CEO Magazine Vol 15.4

ceo

celebrating excellence in organisations Vol 15 No 4 - 2016

Productivity Hangovers Exposed

Cost Optimisation In a Digital Business Age

Mini Cooper

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Breaking the Concrete in ICT 70

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Not So Mini Anymore

Puleng Kwele, CEO of Broadband Infraco

If it’s all about location, invest in the Corridors

If you are looking to invest in Joburg, look no further than the Corridors of Freedom.

The City of Johannesburg is re-stitching the city along planned transit corridors with high intensity, mixed-use developments and public transport. In this way we are creating the ideal environment for residents to live, work and play effortlessly.

And it’s the ideal opportunity for you to invest in a vibrant Jozi.

Corridors of Freedom – re-stitching our city to create a new future for you!

www.joburg.org.za @CityofJoburgZA CityofJohannesburg

Minin

The mining and resources industries affect all of our lives: from the cars we drive, to the cell phones we use, the utensils we eat with, and the money we spend – all rely on the extraction of valuable minerals, metals and resources from the earth. Today there are literally thousands of mines operating worldwide, extracting the stuff we use to make practically every product on earth. However, with mining comes environmental destruction and loss of life.

The mineral industry of

Africa

industry in the world

SA’s wealth has been built on the country’s vast resources - nearly

90% of all platinum metals, 80% of the manganese, 73% of the chrome, 45% of the vanadium and 41% of the gold

Most modern electronic devices

contain over 35 minerals

Gold & Copper

were the first metals to be discovered by

man around

is the largest mineral

500BC

Zinc is 100%

recyclable

Cullinan

The diamond is the largest ever gem

quality diamond found and weighing roughly

3106.75 carat (1.37lb)

The environmental impact of mining includes erosion, formation of

sinkholes, loss of biodiversity, and contamination of soil, groundwater, surface water by chemicals from mining processes.

Au

The chemical symbol for gold is,

from the Latin aurum which means

“shining dawn”

Petroleum is used to make over 6000

items, which include; ink, golf bags, deodorant, footballs,

DVDs, crayons and dentures

Mining releases

coal mine methane a greenhouse gas 20 times more

powerful than carbon dioxide

EDITORSNOTE

Opportunity Awaits I

n recent weeks we have seen years of economic missteps and less than judicious policy thinking within our government rapidly come to a head. There is a recriminatory mood in the air and occasional things that would normally be better left within the confines of high level meetings are making their way into the social sphere.

It is probably fair to say that many business people (and ordinary South Africans too) are greeting this with a mix of depression, disillusionment, frustration and even irritation towards those leaders that have for too long allowed this state of affairs to continue.

Instinctively (and possibly habitually) I have shared these feelings. However, I have come to realise that I need to recapture my own mental space around these issues.

My view is that at long last, we are starting to face many of the issues that have dogged our economy and public sector.

Much of the harm we have experienced is self-inflicted and the corollary to this is that the power to change things for the better is in our hands. The opportunity awaits let’s all focus our energies in the right direction.

Valdi Pereira

The economic impacts have been far reaching and real, but they happened because of what we think to be real, or expect to be real in the future.

CEO 2016 Vol 15.4

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INSIGHTS

JadeAllen

A

Jade Allen, Managing Director, Red Carpet Concepts

Discovering Your Niche

brand should be innovative and unique. It’s important to identify the USP’s and communicate them accurately, making sure they are honest and sensible.

“Our unique 360o approach, powered by below and through the line marketing, is what sets us apart,” explains Allen.

Part of establishing your brand is the identification of your specific target audience. Beginning with market research – know exactly whom you wish to speak to and think carefully about how you plan to grab their attention. PR, marketing, social media, advertising and events are generally the best ways to generate leads. “Without leads a company will find it pretty difficult to leverage any conversion rates,” iterates Allen. Furthermore, it’s vital that the brand offers customers a guarantee. “In order for someone to invest in your brand they need to feel a sense of trust and reassurance. Always ensure your guarantee is achievable and forthright”.

Once you have discovered the underlying passion that drives the need for your business venture; define your brand and pinpointed your target audience, the next step is getting the ball rolling. Thoughts plus actions equal results. According to action coach, Bradley J. Sugars, SMART goals should be specific, measurable, achievable, realistic and time bound.

“Putting goals into motion requires a lot of planning,” adds Allen. “Not only has this been a strategic mega-step in the establishment of Red Carpet Concepts, but a very regular part of our service offering. Each client’s communications strategy is mapped out over a six-month period, detailing every element of each campaign along with the relative dates for execution.”

Much of a company’s successes is powered by a wellstructured work force. States Allen: “Be sure to hire the right staff for the correct positions with clearly defined roles, responsibilities and targets; candidates passionate about the company or brand’s

Focus on Jade Allen

In any business establishing your niche is what gives you the competitive advantage and in turn brings in new business, but how do businesses discover this? First off, identify where your passion lies. “It’s important to start by identifying your goals or dreams and desired lifestyle; define what interests you and what kind of life you wish to live and structure your business around that,” says Jade Allen, Managing Director of Red Carpet Concepts.

specified niche. A good plan and infrastructure in place will result in a well-oiled cog. ” The team should be self-sufficient, able to run day to day procedures with a sturdy management system in place. Step in when there’s fire; otherwise concentrate on working on the company rather than in it.”

In order to benchmark one needs to have measurement tools in place. To reach optimum profitability one must always have facts and figures to reflect on. Allen advises: “always review the results. Look at what worked and what didn’t work for your niche. Then benchmark to improve based on the information and measurements at hand. Keeping your finger on the pulse will assist you in staying that crucial step ahead.”

CEO 2016 Vol 15.4

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CONTEN STATEyourCASE 16 PEO Online Education Made Easy

18 WorldWide Information Services

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Mini Cooper

Committed to Sound Client Relationships

Mercedes Benz SUV’s

10 THE LEADINGEDGE 08

THE FLIP SIDE

In the fast moving and rapidly evolving information and communications technology sector, Puleng Kwele, chief executive officer of Broadband Infraco discusses leadership fundamentals, the possibility of universal access of the internet and the need for new business models in the sector.

20 Annual Reviews Easing Information Overload

REGULARS 2 Your World Unravelled 3 Editor’s Note 5 Insights 8 Flip Side 14 On Point

No Waste, No Fuss for the Mining Industry The mining industry is facing several challenges that have left many people wondering what the future holds for the industry.

SPOTLIGHT

52 44

IN THE KNOW

14 ONPOINT In a world where customers are bombarded with too much information and communication, there is a certain fatigue that comes from companies wanting more and more information about customers and their needs.

52 Spotlight 54 What’s Hot or Not 72 In Conversation With

LIFEstyle 58 Mercedes Benz The new-generation A-Class; Awesome and Comfortable

62 Montecasino Montecasino Has That Winning Feeling

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64 Mini Cooper MUST HAVE or NOT

Not so Mini Anymore: The Convertible and the Clubman

NTS Focus on Excellence

GLOBAL Expand your business Horizon

Publisher CEO Global (Pty) Ltd Tel: 0861 CEO MAG Fax: (012) 667 6624 Tel: 012 667 6623 info@ceomag.co.za www.ceomag.co.za Chief Executive Annelize Wepener annelizew@ceomag.co.za Director: Strategic Development & Editor in Chief Valdi Pereira valdip@ceomag.co.za Director: Corporate & Financial Services Carl Wepener carlw@ceomag.co.za

68 Amina Hersi Moghe

70 Manu Chandaria

A Confident Approach

Knowledge is Power

INtheKNOW 40 Scant Regard for Corporate Governance in South Africa Lately, the subject of corporate governance has intensified in several platforms across South Africa.

44 No Waste, No Fuss for the Mining Industry The mining industry is facing several challenges that have left many people wondering what the future holds for the industry.

46 Why Social Media is Not Valued by Savvy CEOs? One key area of marketing that’s going to be hit particularly hard is the Corporate Social Media team.

50 Six Common Mistakes to Avoid When Presenting to Investors Owners have to create a win-win situation for themselves and investors.

SUPPLYWORX 26 Resolve

Manager: Office of the Chief Executive Nadine Aylward nadinea@ceomag.co.za General Manager: Global Services George Wepener georgew@ceomag.co.za General Manager: Global Media Services Channette Raath channetter@ceomag.co.za Client Relations Administrator Roxanne Mulder roxannem@gmail.com Manager: Business Development – SADC South Neville Mukoma nevillem@ceomag.co.za Anne Anderson annea@ceomag.co.za Danny Kabongo dannyk@ceomag.co.za Martin Thompson martint@ceomag.co.za Journalist Andrew Ngozo andrewn@ceomag.co.za Team Leader: Continental Programmes Pule Mahodi pulem@ceomag.co.za Continental Project Administrators Sylvia Houinsou sylviah@ceomag.co.za Rumbi Chanda rumbic@ceomag.co.za Manager: Corporate Support Raymond Mauelele raymondm@ceomag.co.za Client Development Administrators Winston Williams winstonw@ceomag.co.za Client Liaison Officer Cobus Kramer cobusk@ceomag.co.za Receptionist Wilheminah Nchwe wilheminahn@ceomag.co.za

Supply Chain Infrastructure Solutions for Africa

Office Assistant Minah Mahlangu minahm@ceomag.co.za

28 Tax

Security Guard George Mbana

Five Tax Questions Every Business Owner Should Ask In 2016

30 Intact Security A Look at the 2016 Security Landscape

32 Euphoria Telecom The Impact of Cloud

34 Cutting Costs

* No article or part of an article may be reproduced or transmitted in any form without the prior written permission of the publisher. The information provided and opinions expressed in this publication are provided in good faith but do not necessarily represent the opinions of the publisher or editor. All reasonable efforts have been made to ensure the accuracy of the information contained in this publication. However, neither the publisher nor the editor can be held legally liable in any way for damages of any kind whatsoever arising directly or indirectly from any facts or information provided or omitted in these pages, or from any statements made in or withheld by this publication.

Cost Optimisation in the Age of Digital Business

36 Hangovers Exposed Are Workers Still Intoxicated From The Night Before

CEO 2016 Vol 15.4

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FLIPSIDE

Research conducted in Europe indicates that your average officer worker goes through 10 000 sheets of paper a year.

With the proliferation of electronic reading devices and the strong surge in BOYD during the last few years these printer numbers leave us stumped (apologies, we couldn’t resist). Even more surprising is that 6800 sheets per worker are designated as ‘waste’. We can understand that failing to use duplex functions or unnecessary duplicate printing can contribute to waste, but suggestions that a large portion of copies are simply forgotten on the printer is surely the cherry (apologies, once again) on top.

(T)Say it ain’t So

Paperless

After online trolls launched a co-ordinated effort to trick Microsoft’s online chat bot Tay (apparently it’s a girl) resulting in her spewing racist and other less than desirable comments, she is undergoing an engineering retune. We’re hardly surprised, ‘gathering relevant public data’ that is then ‘filtered’ is hardly going to cleanse Tay’s artificial intelligence of the horrendous amounts of muck circulating in cyberspace. It makes one wonder how regularly the boys and girls at Microsoft are going online.

Hot Diggity Dog In 2017 we will be celebrating the 530th birthday of the hot dog. This American cultural icon was originally developed in Frankfurt (although the good people of Vienna dispute this) and brought to America

by German migrants. Hot dog historians (yes, they really exist) note that during the first year of hot dogs being offered fast food style at Coney Island in 1871, a grand total of 3684 were sold. Current estimations by the American National Hotdog and Sausage Council point to annual consumption of 20 billion hotdogs per year. That is roughly 70 hot dogs per American each year. Stratospheric consumption growth by any standards and frankly (pardon the pun) unbelievable.

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CEO 2016 Vol 15.4

FLIPSIDE

Diversified Oil Saudi Arabia is set to wean itself from oil revenues in the future. The establishment of a Public Investment Fund – funded through initial public offerings in Armaco – is intended to ensure that in the future the Saudi government will be making money through investments rather than fossil fuel revenues. For now Deputy Crown Prince Mohammed bin Salman is tight lipped on where the money will be invested. One thing is for sure, interesting times await the Saudi people.

Green

Grass

Staying with the energy question we have to admit we kind of feel sorry for biofuel producers. For a long time they have been pummelled for the use of corn in the production of ethanol because it creates higher corn prices with associated impacts on the availability of food for the poor. Now that biofuel producers are considering using grass (switchgrass to be more precise) it seems they are being castigated for the impact it may have on animal forage. Did we mention that they are looking into genetically modifying the grass…

*Icon made by Freepik from www.flaticon.com

Sunset Time

A lot of the growth in the American economy over the last decade has been thanks to the boom in cheap energy. However, both fossil and renewable energy players are now feeling the pinch. At the time of going to press strong rumours suggested SunEdison would be filing for bankruptcy. We hate to say it, but we think this is only the beginning of the fallout in the American energy sector. *some of the images were obtained from freepic.com

Breaking the

ICT

Concrete Ceiling in

by Andrew Ngozo

Puleng Kwele, Chief Executive Officer of Broadband Infraco

In the fast moving and rapidly evolving information and communications technology (ICT) sector, Puleng Kwele, chief executive officer of Broadband Infraco shares her experiences about the journey travelled thus far. She talks about leadership fundamentals, the possibility of universal access to the internet and the need for innovative business models in this sector.

LEADINGEDGE - Broadband Infraco

During your time at the helm of Broadband Infraco you have no doubt had a number of highs and lows. What stands out as you reflect on the past?

It has been a difficult time because I made the transition from the private sector into a state owned company which operates in a [very] competitive sector. The high was a low at the same time. When I was appointed to my post, I was faced with people and organisational challenges as well as obsolete infrastructure and equipment. But that low became a high for, in the period that I have been here, I have been able to bring in diligent skilled people as well as new up to date and relevant infrastructure. So that has been a definite high for me. Those two things combined, I think, have set us on a path which I believe will make us break even this financial year. Our financial indicators are showing that we have dealt positively with the non-financial ones. We have focused on the employees, driven performance and governance. The requisite infrastructure exists to support these efforts such that we are on an even keel. It is all systems go for us towards reaching financial sustainability.

Looking ahead, what is the next big challenge for the organisation?

The market is consolidating and everyone is buying everybody else. The government has been talking rationalisation in such a manner that the entire infrastructure is put in one place.

That in itself means that as a player in the industry it requires us to prepare ourselves for that specific challenge. It means that when you are in a space that is consolidating you have to be able to continue to operate independently of others.

Those dynamics, including the impending changes in policy, would drive how this market pans out. That is the most critical factor going forward. As soon as we have the necessary policy direction, later this year, we will know what has to happen.

As a state owned entity, we are working very hard to ensure that we preserve the value of the company, preserve the jobs that are in the company all the while maintaining the high standards of service for our customers. We have worked hard to increase our customer base from a mere four customers to about 23 within a short space of time.

Funding has been another challenge for us in the sense that when your shareholder is the state, and the fiscus is constrained, and you are competing with stock exchange listed companies, you have to make a plan. In a way this means that you literally have to develop survival strategies. It has been a long journey of hard work towards sustainability.

With sustainability comes trust on the part of financial institutions. Now they can trust us enough to put us in their debtors’ books. This is something I could not have said a while ago because the financial fundamentals were missing.

Around the globe, the ICT sector is a fast moving one with ongoing corporate activity and jockeying for market position being the order of the day. What leadership fundamentals do you apply to keep your organisation focused and striving towards its goals in such an environment?

On the top of the list is engagement. Communicate with employees in such a manner that they feel at home when they are at work. Being honest and truthful works wonders in the corporate space. Thus, I make it my mission to periodically engage personally with employees across all echelons. More than anything, the winner is that I drive an open door policy whereby anyone can come and talk to me.

As an organisation we are clear on the fundamentals according to which our people work. When employees come to work, they have a clear understanding of their individual and collective mandates. Bear in mind that as a public sector company we are competing against listed companies which reward employees differently. Instead of competing with them on that front, we look at different methods of rewarding and recognising our people’s worth given the industry that we are in.

There is more to rewards than monetary benefits. But that does not detract from the fact that on the salary front we have to be in line with the market or we would not be able to attract the best. How you retain the best is all due to the manner in which you make their jobs meaningful to them. An individual has to know their role in an environment and derive enjoyment and fulfilment from that. Give them a sense of belonging and worth as well as reward them accordingly and they will produce magic. But underlying all that is that you, as the leader, have to communicate and never stop.

Connectivity is often touted as the key element in growing a knowledge economy. As South Africa and other parts of the continent look to pivot towards knowledge based economies, what else do you think is needed to accelerate growth in these areas?

In the affluent areas, the shift is already there because it is not so much about the laying of the fibre but more about its use. Fibre is an enabler of a whole lot of things. But for a whole new world to open up, public private partnerships need to exist.

For instance, as an infrastructure player, we need to recover costs and keep up with the times in an ever evolving market.

Currently the business models are very challenging because over the top service providers such as WhatsApp and Facebook are giving people service but they are not necessarily paying for that service. In that respect, the monetisation of it is totally different.

On the retail side where people connect directly with the customers there is a need for a new business model to

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LEADINGEDGE - Broadband Infraco

be put together. On the infrastructure side, where the costs are so exorbitant, again, there is a need to assess the existing and new models which can result in infrastructure sharing to minimise the risk.

In my view there is a proliferation of metro fibre builders in South Africa. It is not a sustainable business in the true sense of the word because going forward, if you do not own the end user you stand to lose. So there has to be a link between the infrastructure provider and the user.

Currently the government talks about owning a network backbone where every player will be able to operate cost effectively and competition is flattened out, but is allowed on the service layer. That is ideal but I foresee major changes in our industry in the next few years. What I predict is a scenario where all players are equal.

Already the biggest land infrastructure players have separated the wholesale and retail aspects beyond functionally. Structurally, they claim to have separated that and mobile operators are purchasing smaller ones in order to give themselves critical mass.

Consolidation will intensify rather than diminish because once you have the infrastructure on the ground you have to maintain it. To maintain it you need to be recovering the costs which will mean identifying suitable markets you want to dabble in, taking into account the fact that the nature and shape of the markets are changing on a daily basis.

So I don’t believe that government has a role to play across the entire value chain but does have to ensure that there is access. This speaks to the principle of universal access where we close the digital divide rather than widening it. A thorough process of engagement is required in this regard.

Those with the money need to think about how do they sustainably cover South Africa for everyone and that is very key.

A lot is often made of the multiplier effect that investment in broadband and associated technologies has on economies. Do you think it is as powerful as is suggested?

Without a doubt the economic impact of ICT has been huge. It contributes significantly to our gross domestic product and it enables dramatic changes in ordinary people’s lives. A radiologist is readily available to a person in the remotest of areas while our children have access to the best educators without being restricted by their physical location if there is the technological infrastructure. In the workplace, ICT drives productivity resulting in priceless economic impact.

However, all this has to be balanced with the skills development aspect of it. This means emphasising mathematics and science in schools because as we move to new technologies, we will need the new skills to drive them.

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CEO 2016 Vol 15.4

We have conducted our own study within the company which we have handed over to the national department. We have no doubt that for every ICT investment there will be a major economic spin off. This could be the creation of new job opportunities when infrastructure is being rolled out or even new industries such as social media marketing. ICT brings a shift with it and that shift has to be managed. For instance returns for broadcasters are being minimised because of the cell phone and they have to adjust accordingly.

Definitely the benefits are there, but the concern is that for us to derive the same, the people must be ready and able to use those technologies. South Africa and the continent stand in good stead because mobile telephony will drive the sector a lot. Therefore we will need the fixed infrastructure.

For our part we support a school called Seshigo High School in Limpopo. For three years, we have been providing them with, among others, a telematics board which allows connectivity to tutoring at Stellenbosch University. They have seen the benefits because ever since we started the project with them, the year on year intake and consequent pass rate have increased and improved respectively. That is all thanks to the facilities we have installed at the school which enable learning and teaching to be a breeze for learners and educators.

Universally the benefits of ICT are huge across all the sectors; from health to social services and industry and so on.

What we need as a country are people that can create and implement our own home grown technologies instead of bringing in external parties to roll out infrastructure because we don’t have sufficient skills especially for the high end technology.

How do you feel about transformation within your sector?

Has progress been made and in what areas do you believe more could be done?

We still have a long journey to travel [especially] when it comes to gender transformation. There are too few women at executive level in our sector. That proverbial ceiling is a concrete slab and not a glass one. We will need mortar to break it up.

But, having said that, South Africa has good transformation policies; the hurdle is in the implementation.

When one looks at the information that is required of us by the Department of Labour vis-à-vis employment equity, I think somewhere we are failing as an industry.

As women we will always have the bane of juggling work and life. Somewhere along the line we tend to reprioritise as some of my colleagues have done. Many women think, for some reason, they are better off doing other things than being at the helm.

I also believe women are less organised when compared to their male counterparts. But that issue is much deeper

LEADINGEDGE - Broadband Infraco

because there is still a need for “women only” platforms where we will come together; working twice as hard while learning from our male counterparts. Obviously we need males to support us but more importantly, as women at the top, we need to support each other instead of seeing the other as a threat. Let us pull one another up.

There are many women in the industry but they lag behind, the system is changing, but it does so at a snail’s pace. We will really need to, as a collective, break up the concrete ceiling if we are to achieve meaningful transformation.

To achieve balance is more difficult for women than men. You have to balance home and work until you reach a point where eventually the home wins over career. When I nurture young females I always emphasise the importance of knowing exactly what it is that they want from the onset. It is all about planning and balancing as well as creating a support structure that will support both.

I have no doubt in my mind that the younger generations are better poised to do this because opportunities are available to them. If they can ace men at university they can still beat them in the office and still manage a home. But for a woman to grow we need a man or partner who has grown further. I think in the corporate world the system has been such that it curtails our ability to show our true prowess. At the end of the day, for the system to change is highly dependent on the willingness of men to change the system that they have created.

Do you envisage a future where access to connectivity is available to everyone at no cost?

I envisage one where broadband will be available to all; without necessarily being free. A case in point is our tax base which is very low and, honestly, I don’t suppose taxpayers would want to be burdened more than they are now. Connectivity must be sustainable and affordable. This speaks to how we put together the business models that will allow competition to take place in such a manner that it drives prices down while incentivising people to deploy infrastructure in a cost effective manner.

We must change the current regime because it is neither enabling accessibility nor affordability. Once the business models are such that service providers can lower costs of roll out and competition is enabled then that should be able to work. But it should be universally accessible. Also, if we don’t want the latency in our instant communication, then it is a no brainer that fibre is the best way to go for backhauling information.

As a state owned entity, we are working very hard to ensure that we preserve the value of the company, preserve the jobs that are in the company all the while maintaining the high standards of service for our customers.

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ONPOINT

Knowing What Makes Your

Customers

Happy

by Aki Kalliatakis

In a world where customers are bombarded with too much information and communication, there is a certain fatigue that comes from companies wanting more and more information about customers and their needs.

S

ometimes the information is genuinely about what the business can do to get better and to improve the total experience of their customers.

But more often than not, there are two ulterior motives. First, companies want to glean as much information about their customers as they can in order to cross-sell you more stuff. They don’t actually care about what your experience is really like, but they are focused on making their sales targets, and improving their profitability. Second, the company executives want to find out how they are doing versus their competitors: “As long as we are better than them, we should be okay,” is the rallying cry.

For customers that have got too much going on in their lives, you can see how these last two goals for communicating are doomed to failure, and what they tend to do is make customers even more angry and stressed, and therefore to reject that company’s offer. It’s even worse when companies decide to go the route of efficiency and cost-cutting, and ask you, nay, demand from you, that you complete an on-line survey.

‘Besides which,’ most customers conclude, ‘even if I do share my thoughts about the total experience, nothing ever changes anyway, so what’s the point?’

Bearing in mind how precious most customers’ time is to them, if you genuinely want to get feedback about how your customers feel, then there is no shortcut. Fred Reichheld of consulting firm Bain and Co tried to address this by suggesting that we ask one important question to test their loyalty: ‘How likely is it that you will recommend our company to a friend or colleague?’ It’s not a bad

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CEO 2016 Vol 15.4

ONPOINT

Bearing in mind how precious most customers’ time is to them, if you genuinely want to get feedback about how your customers feel, then there is no shortcut.



 question, but it doesn’t give you any quality information about what they like or don’t like about doing business with you.

So what’s the answer? While there are many ways to get good information about what customers want and how they feel, it’s a good idea to go back one step and ask what information you need. I’d suggest that there are at least five things that you need to know:  What do they like and don’t like about your products, i.e. what they buy?  What do they like and don’t like about your service and delivery, i.e. how they get it?  What do they like and don’t like about your brand and image as a company?  What do they like and don’t like about the skills and attitude of your people?  What makes it easier or more difficult for them to do business with your company?

But it’s not only about asking them about these things in a formal survey. There are other ways in which you can garner good information and, more importantly, innovative ideas for improvement. Here is a taste…  Observe your customers: How do they respond to your business? What do they struggle with? What confuses them?

What causes them to abandon a purchase? What happens after they buy from you? There are probably dozens of

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questions that can be answered without hassling your customers.

You can also look internally at things that cause customer misery and customer delight. For example, when do you experience bottlenecks and delays that frustrate customers? What surprising and positive responses did you get when you tried something different? You can also look at some of your numbers like new versus existing customers, debtor days, repeat business rates, and so on.

Talk to you employees – and their families: People who work for you and their families and friends also buy from companies, and maybe even yours. But even more importantly, your staff deal with customers every day, sometimes hundreds of times a day, and if you only just asked them they would be able to share valuable information and insights.

Use mystery shoppers: You don’t have to hire a business to do this. Train your associates and friends to conduct these properly, or even better, go and buy stuff from your business to see what it’s like.

Analyse all comments and complaints intensely, reading between the lines. Before you get back to customers, make sure you have done your homework and understood exactly what, why and how this all came about. Look out for patterns.

Record all events. And make sure that every single one of them is followed up internally with a view to improvement.

But if you also want to talk to your customers, make a big thing about it. Thank them profusely for giving up their time, and perhaps even consider some kind of reward or recognition that they will value. Tell them what will happen with their thoughts, perceptions and ideas, and don’t forget to give them feedback afterwards. Whatever method(s) you use – including live or telephonic surveys, questionnaire, informal discussions over a cup of coffee, or more formal and structured customer focus groups – make sure that you record their thoughts and ideas properly.

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he says that effective learning for your workforce goes way beyond design and delivery. “PEO provides supportive academic services on a range of levels to meet a customer’s needs. We ensure that students are never alone in their education walk but receive constant academic support through our centre.” According to her, PEO provides topic specific portals to extended enterprise solutions and they will partner with a client to create and sustain a learning system that students love.

Tshabalala elaborates that PEO maximises educational output through creative technological solutions designed and constructed to meet the needs, expectations and desires of a variety of institutions, individuals and organisations in the public and private sphere. She notes: “We identify opportunities through a prudent mix of insight and foresight.

Then we bring together our productive resources to capture these opportunities.”

Sharon Tshabalala, Executive Chair & CEO, Nano Solutions & Technology, the parent company of PEO Online

Education made easy

by Andrew Ngozo

Providing training programmes (short courses) such as those for people working towards professional qualifications, apprenticeships and skills development programmes can be time consuming and expensive to deliver. But these challenges need no longer be a barrier with PEO [Perfecting Educational Output] Online as your educational partner, says Sharon Tshabalala, Executive Chairperson and Group CEO of Nano Solutions and Technologies, the parent company of PEO Online.

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The Courage to Be Different “We believe in creating markets, in essence that means establishing new products and services into existence. For our customers, it means creating a new category of choice, not simply another variant within an existing class of wellestablished products and services,” declares Tshabalala. PEO strives to carve out a distinctive approach to the future, to take the risk, to give imagination a free rein and the chance to outperform and overcome the competition. “Our vision is based on the intellectual courage to resist the obvious strategy, to see through the standard version, to go beyond the popular fad and to steer one’s own course,” Tshabalala says.

PEO Online makes it easy for students to be able to access learning material anywhere, any place and any time. “PEO prides itself in making sure that learning outcomes which are defined in terms of the knowledge, skills and abilities the students have attained are a result of their own involvement in the educational experiences managed by PEO,” she states. Among others, PEO offers learning management systems, tactical learning portals, managed learning services, blended programmes, webinars and virtual classrooms, consultancy and training, adapt learning (for multi-devices) as well as academic and technical support.

In today’s global village, Tshabalala says PEO has a global network outlook on educational challenges. “As a result, we are able to bring global solutions to problems and share best practices with our customers. We relish the opportunity to tackle complex projects in challenging environments.

Our team of highly skilled and experienced developers and business domain specialists are able to offer innovative solutions to various key vertical industries with a particular focus on e-learning, learning management systems and intelligent transportation systems,” assures Tshabalala.

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by Andrew Ngozo

In a fast moving and rapidly changing technological age, most organisations in the information services struggle to survive, and at best fizzle out naturally within a few years. But such is not the tale of WorldWide Information Services (WWIS), which, in 2016, not only celebrates 10 years at the apex of the industry but has had international acclaim from global players.

André Van Tonder, Managing Director at WorldWide Information Services (WWIS)

rom humble beginnings and taking over a non-profit making entity in early 2006, André Van Tonder, Managing Director at WWIS was determined to defy all odds and succeed. He says, at the time, he asked himself whether it was worth taking the risk. “Both me and my business partner, Fiona Bester took the risk nonetheless. We made a big loss during the first year but the tide started turning afterwards. WWIS broke ground despite the fact that international competition was stiff.

They had the resources that we did not have,” he states.

The Right Credentials Van Tonder explains that their breakthrough came when he had meetings at the London Online conference in the UK. He elaborates: “We had the right credentials. WWIS had the local knowledge required to do business in this space. We had to do responsible selling in order to please both our suppliers and the end users. Business became so good that we became selective of who our suppliers were.” It is no surprise, then, that WWIS has

STATEYOURCASE - WWIS

become one of the leading information services companies in South Africa and recognised worldwide.

In 2010 WWIS was awarded the Agency of the Year Award

by Thomson Reuters, a major multinational mass media and information firm. “This was our breakthrough as it gave us a new status locally and abroad. As a result we have been growing rapidly ever since, especially since some of our competitors are now history,” he states.

What is WWIS’s recipe for success, in seemingly difficult

maximise on resources. “We don’t spend money irresponsibly. We invest in infrastructure, cut costs where applicable and keep costs as low as possible. This means, for example, utilising unpretentious offices. As a result our books are very healthy,” says van Tonder who adds that he is grateful for the humble beginnings because they “prepared us for the hard times later on”.

He says there are key ingredients which have contributed to WWIS’s success 10 years on. “These are passion, trustworthiness, accountability, knowledge, reputation that’s built on customer

In a tightly contested industry, WWIS prides itself that it has grown significantly and acquired market share from its competitors as a result of being able to be different. economic times? “At the core of our success is that the entire team is driven by a passion for what we do. It is comprised of extensively experienced individuals who have built and forged relationships in the sector for several decades,” he says. In addition, van Tonder says, as an intermediary between the customer and the publisher they look at the precise needs of the customer and develop a relationship with the publisher.

“WWIS is not a sales agent but an agency partner. We are sustainability focused and seek to develop enduring relationships where they are valued and can make a difference. We help shape publisher and client needs and wants; negotiating fair remuneration for services rendered,” notes van Tonder. He adds that they do business with publishers based on longer term opportunities and deliver many value-added services to both publishers and their clients; all the while seeking out opportunities to maximise sustainability for them.

In a tightly contested industry, WWIS prides itself that it has grown significantly and acquired market share from its competitors as a result of being able to be different. “We have the ability to innovate in our solutions delivery and have a flexibility of approach and pricing.

We have unparalleled knowledge of the industry in which we operate and are committed to sound client relationship management in person rather than through call centres,” he points out. Further to the above, van Tonder states that WWIS is persistent and fearless in pursuing more attractive, efficient and effective delivery of services.

“We operate without conflict of interest as we do not market our own products and services, in competition with publishers. Our vision is to become the dominant managing agent in the provision of subscription and information services to academic libraries and research institutions in South Africa, Southern and Central Africa.”

A Lean and Mean Team The 10 years that have elapsed have been no mean feat, says van Tonder. “We did not get to where we are by relaxing. We are perceived as one organisation that walks the extra mile for publishers and end users because, easily, the greatest investment and asset is our people who are enthusiastic about their work!” he exclaims. It is not only human resources that WWIS invests in.

Van Tonder says his is a lean and mean organisation that seeks to

trust and transparency. We acknowledge the ever changing needs of the industry and adjust accordingly while constantly reinventing ourselves to ensure that we can always improve,” he notes.

According to him, it is important for the industry that there are competitors. “Friendly competition is vital because if there is none then you are running at a loss. I believe we have the best [human] assets in the industry. Underlying all of that is the hard work which makes us indispensable to the publishers.”

In conclusion, van Tonder points out that the subscription agent business is not an easy one as many agents have closed their doors, merged or been taken over especially over the last decade. As quoted by Melissanne Scheld, managing director at Publishers Communication Group (PCG): “Agents are key to a successful publishing supply chain as they are the intermediaries between content and library consumer. Without agents involved in facilitating the purchase process between thousands of libraries and thousands of publishers, the system would likely grind to a halt.

“The long-term future will require greater transparency in business transactions between agents, librarians and publishers.

As OA models grow, an agent’s role will not only be that of a traditional sales functionary but also a content advocate, working with both libraries and academics/researchers to bring forth new content. As long as there are subscription-based products, there will be a need for subscription agents.”

To Provide the Best ROI WWIS’ mission is to innovate in the delivery of subscription and information services, through flexible local pricing, client and partner consideration and seamless, value added technology services. Its primary objective is to provide clients with the best return on their investment in information resources.

CEO 2016 Vol 15.4

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T

hankfully, notes Lopez, review articles in general, and those of Annual Reviews specifically, play an essential role within the dynamic ecosystem of scholarly communication. She says: “In the digital age, they have come into their own even more, and help to ease this extreme information overload. Reviews act as a conduit between experts and non-specialists, students, faculty and journalists.

Valuable expert knowledge and perspective serve as a high-quality filter for the exponentially expanding corpus of primary research. Through reviews, research is synthesised, summarised, and presented in clear and compelling style.”

Interestingly, the issue of ‘too much information and not enough time to make sense of it all’ is not new, and was a serious challenge back in 1932 for Annual Reviews Founder Dr. J. Murray Luck. As a Professor of Chemistry Emeritus at Stanford University, he found himself overwhelmed by the amount of time it would take to find and read all the relevant literature. He collaborated with other colleagues who faced the same challenge, and together they created the first Annual Review of Biochemistry. “The ingenious way they invited experts to curate original research and create valuable reviews continues today, and makes Annual Reviews a unique and indispensable part of the research communication landscape,” states Lopez.

Easing Information

by Andrew Ngozo

Overload In the research communication industry globally, 2016 continues to be a time of great change; and it shows no sign of slowing down. Andrea Lopez, Director of Sales at Annual Reviews, a non-profit research publisher, says the current expansion of the scientific literature is growing at a rate of more than two new research articles every minute. It is simply impossible for researchers to consume and understand this flood of information. This, she states, then begs the question: “So how does one sort through the available literature?”

Andrea Lopez, Director of Sales at Annual Reviews

Expert Editorial Committees According to her, Annual Reviews has a unique process of creating reviews whose journals span over 50 disciplines, and continues to grow. She explains: “We bring together expert editorial committees for each discipline and facilitate meetings where members can discuss important trends and select relevant topics for review. Authors are then invited to contribute an in-depth review of the topic, and they accept the invitation as a recognised service to scholars and society.”

Annual Reviews’ collection of journals helps academics and students at all levels increase their knowledge of vital research contributions, from historical context and current understanding, to major questions that remain to be addressed. Lopez points out that their journals have a very long ‘shelf life’ and “are among the most highly cited in all of the scientific literature [Thomson Reuters Journal Citation Reports® (JCR)]”.

In a media cycle driven by immediacy and the soundbite culture, Annual Reviews brings much needed context and depth to the discussion. Also, as a treasured library resource, Lopez believes that Annual Reviews can support more users by launching new journals in emerging fields.

“Our successful partnerships with other stakeholders in the research ecosystem, like WorldWide Information Services (also featured in this issue of CEO Magazine) have allowed us the opportunity to reach more researchers worldwide.”

ANNUAL REVIEWS

CONNECT WITH OUR EXPERTS

SPARK A CONNECTION For more than 85 years, non-profit publisher Annual Reviews has synthesized and analyzed the research literature in clear and compelling style to stimulate discussion about the research that shapes our lives.

Since 1932, the number of Annual Review journals has expanded exponentially and continues to grow over a broad range of disciplines within the Biomedical, Life, Physical, and Social Sciences, including Economics. The creation of a new title indicates that the amount of original research in a field has reached a critical mass, and represents the “coming of age” for the discipline. For example: Year of Introduction: 2014

2015 2017

Journal Discipline: Organizational Pyschology and Organizational Behavior Statistics and Its Application Virology Linguistics Vision Science Cancer Biology

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“Invitations to write an Annual Review article typically elicit some mix of thrill, dread, pleasure, indecision, burden, intimidation, and challenge—not unlike commencing one’s PhD or undertaking a skydive.”

Fiske S, Schacter D, Zahn-Wexler C. 2001. Preface. Annual Review of Pyschology. Vol 52

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Capacity  Resolve Supply Chain Infrastructure Solutions for Africa Trends  Tax What You Should Know In 2016

 Cloud Computing The Impact of Cloud

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Supply Chain Infrastructure Solutions for Africa

His Excellency Terence McCulley, Ambassador of the United States of America in Côte d’Ivoire, at the inauguration ceremony of the new pharmaceutical Warehouse-in-a-Box™ in Abidjan, Côte d’Ivoire

The new Warehouse-in-a-Box™ in Abidjan, Côte d’Ivoire, measures 4 095 m² and is pharmaceutical compliant.

Economic growth in Africa often brings increased pressure on supply chain infrastructure, creating challenging business conditions and difficulty in matching supply with demand.

“I

f we want to execute supply chain design effectively in Africa, we need creative and flexible solutions,” says Arno Haigh, Executive Director at Resolve Capacity, a division of supply chain specialists Resolve Solution Partners.

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The healthcare industry in particular is a focus, as many African countries have experienced a surge in volumes of medicine and healthcare products moving through their public health facilities, putting strain on existing infrastructure and affecting supply chain efficiencies.

Pharmaceutical warehouses are largely invisible to patients, but they are essential to ensuring that health commodities are available and importantly, compliant. Poorly constructed, maintained or managed storage facilities put products at risk of damage, diversion or expiry – all of which put health programmes and patient health in jeopardy.

“With warehouses already built or underway in Tanzania, Ivory Coast, Mozambique, Kenya, Nigeria and Rwanda, we really are making strides in improving supply chain infrastructure in Africa, particularly in the healthcare industry,” says Haigh. “This is in addition to facilities already built in South Africa.”

To complement the supply chain infrastructure, Resolve Capacity also has a wide range of modular clinics and storage solutions that offer a unique balance to the typical challenges existing across the continent.

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“We broke ground in October 2014, and were pleased to hand the warehouse over to NPSP in January this year,” says Haigh. “This new warehouse will significantly enhance the pharmaceutical distribution network in Côte d’Ivoire, as well as storage capacity for the distribution of quality medicines.”

One of Resolve Capacity’s most recent projects is a Warehouse-in-a-Box™ in Abidjan, the capital of Côte d’Ivoire.

The contract was awarded in July 2014 to Imperial Health Sciences by SCMS (Supply Chain Management Systems), for which Resolve Capacity is a service provider, and was implemented in Côte d’Ivoire on behalf of New Public Health Pharmacy (NPSP), the organisation responsible for the distribution of pharmaceutical products for public health institutions operated by the country’s Ministry of Health.

Along with its partners Turnkey Infrastructure Solutions, Resolve Capacity implemented its unique modular infrastructure solution for this $5.8 million, 4 095 m² warehouse project, which includes administration facilities etc.

“We broke ground in October 2014, and were pleased to hand the warehouse over to NPSP in January this year,” says Haigh. “This new warehouse will significantly enhance the pharmaceutical distribution network in Côte d’Ivoire, as well as storage capacity for the distribution of quality medicines.”

The construction of the prefabricated warehouse is the result of joint funding by the United States Agency for International Development (USAID) and the Global Fund for the Fight Against Tuberculosis, AIDS and Malaria.

The new warehouse will allow for significantly increased pharmaceutical compliant storage capacity, and will help streamline the provision of HIV/AIDS-related and other health products. The number of people on antiretroviral therapy is increasing rapidly, which means an increased requirement for drugs and supplies for screening volume, clinical laboratory testing and support. Storage therefore needs to be increased at a national level, and this warehouse will allow the NPSP to better organise its storage system and distribution to ensure continuous availability of essential medicines.

Resolve’s Warehouse-in-a-Box™ design is unique, and enables the rapid commission and installation of a prefabricated warehouse with all the componentry required to deliver a total solution, packed and ready for delivery in 40ft containers. The solution addresses

a country’s chronic lack of supply chain infrastructure, limited storage space and lack of quality storage facilities.

Suitable for both urban and rural settings, the standards and operational benchmarks are aligned with international supply chain principles.

The design can deliver between 500 and 10 000 m² of pharmaceutical warehouse space, and long-term scalability is made possible through its modular design, which is readily adjustable to accommodate future growth demands.

“The materials we use in producing Warehouse-ina-Box™ facilities are up to 30% cheaper than traditional building methods, and the product boasts a 30 plusyear lifespan,” says Haigh. “We also place a high focus on sustainability – each one can be built to four-star green building standards, and they are designed with water, HVAC condensate and solar harvesting. They also feature water and waste treatment, as well as reduced cooling and energy costs due to their energy-efficient panel and door designs.”

Facility deployment in Africa is complicated by limitations in developing countries. “With Warehouse-in-aBox™, however, we can overcome these limitations,” he says.

“Our warehouses may fit in a box, but our thinking certainly doesn’t.”

Another project initiated last year was for USAID Mozambique – a $7.6-million pharmaceutical warehouse in Mozambique’s Nampula region in the north. “This traditional warehouse enhances the pharmaceutical distribution network in Mozambique, as well as storage capacity for the distribution of quality medicines,” explains Haigh.

Haigh and his team are excited about the projects Resolve Capacity is involved with. “We know that in addition to job creation and local business development during construction, our projects have a significant positive impact on distribution networks in their regions,” concludes Haigh. “We are also helping alleviate the supply chain infrastructure challenges our continent is facing, and moving the African economy forward through enabling growth and development.”

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by Yolandi Esterhuizen, Legislation Manager at Sage HR & Payroll

Tax Questions

Every Business Owner Should Ask In 2016

It’s tough out there. Entrepreneurs need to do more with less and keep an eye on changes in the tax legislation, as these could affect their payroll calculations and the tax they need to pay on behalf of their employees.

F

inance Minister Pravin Gordhan’s recent budget speech admirably brought a sound outline for the country’s framework for the next year with some changes in tax legislation. Some of these legislative changes (as included in the amendment Acts and reiterated in the budget speech), such as employee contributions to retirement funds, will most probably have an impact on the company’s payroll systems.

Here are the five tax questions every small business owner should be asking their tax consultant this year

SUPPLYWORX

1. What is happening with the Employment Tax Incentive (ETI)?

The 2016 Budget indicates that the ETI will be reviewed in the third quarter of 2016 with a view to extending its life for another year. It is still debatable whether ETI has been effective in addressing the crisis of youth unemployment.

If the legislation is to be renewed, it needs substantial changes to make it more effective and to encourage wider participation by businesses. Areas of difficulty in the current legislation include:  Putting the responsibility for minimum wage compliance into the ETI Act has compromised its simplicity and effectiveness.  The three-step formula used to calculate the monthly incentive, results in complicated and poorly understood ‘grossing-up’ calculations that the payroll must perform if a ‘partial month’ is worked.  If employers claim the monthly incentive in a month in which they are inadvertently not tax compliant, penalties and interest can be the result. This risk is too high in the opinion of some employers.

Generally, some employers are of the opinion that the administrative costs and risks outweigh the financial benefit of the incentive. I am hopeful that pragmatic changes to the ETI Act can address these challenges and improve its effectiveness as a way to boost youth employment rates.

2. Will there be any changes to employee contributions towards retirement funds?

Yes. From March 2016, any employee contributions towards a retirement fund (pension, provident and retirement annuity) are tax deductible, subject to a limit which must be applied by the employer. Previously, contributions towards a provident fund were not tax deductible.

The employee may contribute more than these limits, but he/she will only receive the tax benefit up to the statutory limit.

Any contributions made by the employee in excess of the limits will reduce the taxable value of any lump sum paid in future.

3. Am I obliged to register with SARS for skills development?

Yes. All employers registered with SARS for employees’ tax purposes in terms of the Fourth Schedule of the Income Tax Act, must register with SARS for skills development, irrespective of whether they are excluded from paying the levy by one of the following conditions:  any public service employer in the national or provincial sphere of government,  any national or provincial public entity, if 80% or more of its funding comes from government,  any religious or charitable institution,  any municipality in possession of a certificate of exemption,  any employer where the total annual remuneration for the next 12 months is not expected to exceed R500 000.

4. Has there been any change to the income replacement policies since 2015?

No. Since March 2015 premiums towards an income replacement policy were no longer tax deductible and this remains the same. It has not been affected by the changes to retirement fund contributions and how it should be treated on the payroll.

5. Are medical aid contributions still no longer tax deductible on the payroll for employees who are 65 years or older?

Yes. Since March 2014, medical aid was no longer tax deductible for employees who are 65 or older. If an employee contributes towards a medical aid, the employee will be entitled to a tax credit amount.

However, effective from March 2016, these individuals will also be allowed an additional medical tax credit on the payroll.

This value is calculated by allowing 33.3% of the value of the medical aid contributions which exceeded 3 times the normal medical tax credits.

Closing words I believe that the global economy is powered by SMEs. Economic stability, growth and employment are reliant on the success of SMEs.

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A Look at 2016

Security Landscape A couple of years ago, the security industry claimed the anti-virus industry was dead. This isn’t strictly true. On one side, pure anti-virus companies do not exist any longer, but instead of security companies limiting themselves to a single, traditional anti-virus product, they have expanded their offerings to become information security organisations.

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In order for the security industry to develop there are two things that must happen, he says: staying at the forefront of technology and doing everything possible to become an industry game-changer. Businesses must bear these two points in mind, and continually strive towards them if the industry is to thrive and stay ahead of the bad guys.

“In terms of what developments we can expect in the enterprise security sector this year we can expect a rise in machine learning,” says Blaeser. “Advances in deep learning will help security vendors better their malware detection rates, through the employment of real-time, predictive analysis. We might see a new class of security solutions develop to pre-empt zero-day attacks that have been so detrimental to organisations in the past.”

It is essential for organisations to establish best in class test environment management practices at an enterprise level.

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utz Blaeser, MD of Intact Security, says in this way, security companies are transforming to meet the security needs of the future, and adapt to the everchanging, increasingly sophisticated threat landscape. He cites an example as Bitdefender, a top security company that Intact distributes. “Bitdefender is now creating hardware that embeds its scanning technology to fend off emerging attacks on consumer-grade IoT devices.”

The market for this sort of technology is on the edge of maturity, so the need for security where the IoT is concerned is becoming more and more crucial every day.

“Gartner has forecast that 274.6 million wearable electronic devices will be sold globally this year, a whopping increase of 18.4% from last year,” he adds.

According to Blaeser, an additional area that has great potential for innovation is the enterprise security arena. “For many years cyber thieves have been eyeing enterprises as potential treasure troves of valuable data. For this reason, businesses need the maximum available protection, to ensure their data, and therefore their customers, are kept safe.”

This is an area where Bitdefender shines, says Blaeser.

“Bitdefender was recently named a Visionary in Gartner’s Magic Quadrant for Endpoint Protection Platforms.”

He sees the increased adoption of open-source as another trend among CIOs this year. “CIOs are recognising that innovation is key to gaining a competitive advantage in this new landscape, and organisations of all types and sizes will look to open-source for innovation as well as critical business operations. In terms of security, open-source is being refined and tweaked all the time by dedicated teams, and is becoming increasingly proactive in its approach.”

Speaking of the IoT, Blaeser says security standards around this trend will continue to evolve. “As more organisations adopt IoT technologies, OEMs and device manufacturers will be compelled to define new IoT standards that ensure not only efficiency, but that security is built in to these devices from the ground up, not slapped on as an afterthought.”

2016 will also be the year of the single-platform security solution. “Companies are looking to save time and money, and will look to all-in-one offerings for their security needs.

We’ll see a rise in a unified management console to manage and control mobile, on-premise and virtualised endpoints in the business. Point solutions are on the way out, and administrators will see their role being streamlined.”

Finally, we will see managed security services providers (MSSPs) adopting integrated security. MSS is a multi-billion dollar market, and it is only going to grow, according to Blaeser. As a reaction to increasingly complex threats and adversaries, MSSPs will take security specialists on board to help better protect their customers, as well as manage security along the chain, from deployment and policy setting to security monitoring.

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Cloud-based communications have given businesses improved operational system capability, flexibility and simplicity in order to revolutionise the modern workplace.

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The cloud can also save money and time by helping manage the important parts of one’s business, from procurement to finance, inventory to human resources, so that one can optimise resource planning

Companies that have already moved their email and file storage to the cloud should now also consider moving their phone system to the cloud. Moving to the cloud is not just about adopting a new technology platform but transforming the way one does business.

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loud computing is making huge waves in the business world, consumer cloud services such as iCloud, Google Drive and Dropbox have changed the way people think about digital content and how to use it. Cloud is fast becoming the preferred choice.

Euphoria Telecom CEO George Golding says this is barely the beginning. “The rise of utility computing services, delivered over the Cloud, will continue to disrupt markets, spawn new business models and revolutionise informationsharing and business management for years to come.”

There is a workplace revolution with cloud technologies, they provide businesses innovative new ways to communicate, collaborate, interact, and work. More and more companies will be making cloud investments in the near future as they transition into full reliance on cloud technologies.

Cloud-based communications have given businesses improved operational system capability, flexibility and simplicity in order to revolutionise the modern workplace.

By giving companies of all sizes access to information technology that was previously affordable for only the largest of companies, the cloud has levelled the competitive playing field.

Analysts expect the Cloud computing market to reach US $40-billion in five years and they also predict that more than 75% of small businesses will have moved to the cloud by 2020.

Golding says the true power of the cloud lies in what the technology offers. “A business phone system in the cloud is designed for the way companies work today. It keeps employees connected to customers and teams wherever they are working, on whatever device they are using and however they are collaborating.”

Cloud-based phone systems can help save costs, streamline operations, improve productivity and scale your business. It not only allows companies to invest more back into their business, it also increases profits by saving costs.

“Using a cloud phone system for your business will help you generate more revenue by saving on capital expenses and making better use of your resources. Many businesses opt for cloud solutions when getting their company off the ground as it reduces the upfront investment for email, web and document hosting and even phone systems,” he explains.

Eliminate startup costs and deployment expenses by opting for cloud technologies, they are synonymous with lower software and tech maintenance requirements. They will help you avoid the costs and challenges associated with traditional on-premise deployment.

The cloud can also save money and time by helping manage the important parts of one’s business, from procurement to finance, inventory to human resources, so that one can optimise resource planning. The fact that cloud technologies offer solutions to address most core business challenges, it helps businesses make the most of their limited resources.

“Replacing on-premise telephony infrastructure with a cloud solution means your phone system can be managed entirely through the web, taking just minutes to deploy to your company.

As you scale, add or remove business lines with the same speed and ease as you did setting up your first line. Hosting your business phone in the cloud also means it can quickly adapt to any software updates or improvements, without needing to purchase new hardware,” he concludes.

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Cost Optimisation in the Age

of Digital Business

Why CIOs need a cost optimisation strategy that includes creating revenue-generating digital opportunities.

I

f cutting costs is the first thing that comes to mind when you think about 'cost optimisation,'consider the example of an oil company. For successive quarters, the entire industry has suffered from a deluge of oil glut. Fortunately, the CIO took away an important lesson from the Great Recession (which began in 2007): Don’t start thinking about cost optimisation only when you’re told to cut the budget.

As worldwide markets were recovering, the CIO worked with the business to make a case for investing in analytics and forwardthinking capabilities such as visualisation and modeling. This has made its oil exploration efforts much more operationally efficient (which is critical in such a heavy-asset-intensive business). In challenging times, the company is already better equipped to weather the storm.

When the economy shows signs of sliding downward, “Simply cutting the IT budget and taking an approach of waiting until the economic environment is more favorable to make digital investments” isn’t a viable option for organisations that want to stay competitive, said Barbara Gomolski, managing vice president at Gartner. “That approach limits your ability to create revenue-generating opportunities when you probably need them the most.”

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The 4% challenge When you’re told budgets need to be cut, keep in mind that “IT costs represent only a small fraction - 4% - of business costs,” said Ms. Gomolski. “Cost optimisation in the age of digital business means looking beyond IT and including business costs in the initiative,” she stressed.

Your cost optimisation strategy should be holistic, and include three different types of activities, explained Kurt Potter, vice president and distinguished analyst at Gartner: 1. IT cost optimisation: Reduce IT costs while maximising business value 2. Business cost optimisation: Use IT to digitalise and optimise business processes 3. Digital business: Prepare for a digital future by digitalising physical assets, data and business processes The cycle of cost cutting Some economic indicators might seem uncomfortably familiar for IT leaders who weathered the Great Recession.

For example, noted Ken McGee, vice president and Gartner Fellow, the Dow Jones Industrial Average, Financial Times Stock Exchange 100 Index and Shanghai Stock Exchange Composite Index were in decline prior to both 2008 and 2016.

Veterans of the Great Recession are no strangers to IT cost cutting and optimisation. Since then, many CIOs have squeezed out excess IT capacity to make their organisations vastly more

efficient, to the point where IT budgets are incredibly lean.

Mr. Potter noted, “The average change in CIOs’ year-over-year budgets for the five-year periods leading up to 2008 and 2016 were 2% and 0.004%, respectively.”

Now, CIOs need to be proactive about helping the rest of the organisation reduce costs. Business operations and nondifferentiating activities are good starting points. Also consider how IT capabilities, such as bimodal, can be applied in other parts of the organisation to help them operate more efficiently.

Ultimately, using more information technology (as in the example of the oil company), rather than simply focusing on ways to trim the budget, will be your best strategy to help the business run more efficiently.

CIOs as optimisation advisors The good news is that your business needs technology more than ever. Technology isn’t about just keeping the operational lights on anymore — it’s often about staking out new ways to generate revenue by attracting and keeping customers. To grow and transform — in sum, to remain competitive — the business needs to have a digital optimisation strategy. This is a value proposition that excites CEOs and boards of directors.

“CIOs should adopt the role of technology advisors and counselors, and recommend to CEOs and boards of directors that they spare revenue-creating systems from the proverbial axe,” said Mr. McGee, “because this time, things are different.”

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SUPPLYWORX

Hangovers Exposed

by Rhys Evans, Director at ALCO-Safe

Are Workers Still Intoxicated From The Night Before?

It has been a tough day. You make your way home, sit down in front of the TV, pop open a beer and unwind. You sit down for dinner and have another, and another. Before you know it, you have had too much. It’s been a rough day, and you need to let lose, you invite some friends over and before you know it, its 3 am, you are lying in bed and you can’t remember how you got there.

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he situation of how it starts may differ, but the end result is always the same – illness and fatigue. Importantly, there is a strong possibility that when you clock in for work later that morning, you have a hangover and alcohol is still in your system. This can have dire consequences.

One alcoholic beverage takes a full hour to make its way out of your system and includes one standard sized beer, 130ml glass of wine or one and a half tots of spirits. If a lot of alcohol is consumed, it can take many hours for it to work out of your system. By the time a person clocks in for work, there could still well be an excessive amount of alcohol in their system, impacting their ability to execute their work and possibly putting their colleagues in danger.

The effects of alcohol on the body are significant, particularly when feeling the ill effects of ‘the night before’. Your body hurts due to inflammation, your heart is put under strain as the effects of anxiety are heightened, endorphins crash and dehydration sets in, not to mention the effects on your stomach - your body loses its ability to absorb minerals and vitamins for a period of time. Your brain function lessens by up to half due to an overuse of dopamine takes place when intoxication sets in and the body goes into a state of orthodoxic hypotension, causing dizziness and nausea.

“The problem with a hangover is that you don’t realise you have one as a large percentage of the time you are still intoxicated when you wake up. The brain does not register the change between being sober and being intoxicated. If you wake up and don’t feel the after effects of the night before, it’s because you are still intoxicated and chances are that at around lunch time you will begin feeling fatigued and ill, your sugar levels begin dropping rapidly and the individual’s wellness begins deteriorating.

It is obvious that these effects on a worker operating a crane, forklift or heavy machinery could easily result in an accident, or even death. However, many employers miss the signs and after

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an incident occurs, claim to have taken the necessary preventive steps. Many employers do take the minimum precautions necessary to attempt preventing accidents, however, the impact of an incident happening is far greater on the company than the implementation of regular testing before and even possibly after a work day. If an incident occurs in a mine for example, the mine will be shut down for a period of time whilst an investigation occurs, as well as fines incurred, this is a costly procedure, employers would be better off testing more often as opposed to random testing procedures.

The Occupational Health and Safety (OHS) laws make provision for this. It states that no employer may legally allow an employee on site if they are or appear to be under the influence of alcohol or drugs. This includes tell tail signs such as smelling of alcohol or exhibiting symptoms of a hangover. In such a case, the employer is liable for more serious repercussions than the employee should an accident occur.

It is management’s function to ensure the Alcohol and Drug Abuse Policy is compiled and ratified. Importantly, they need to ensure that employees comply. The formulation of the Policy is a crucial process and requires input from all levels of management, and a fair amount of policy content will be decided upon from the results of past experience in dealing with the problem.

It is important to revise your alcohol policy regularly in regards to amendments made by the department of labour, often white collar workers think that they are exempt to the rules as most accidents that matter take place on construction sites or in mines.

This is not the case. It is a contradiction to the OHS act have intoxicated employees in the work place, even if you are an IT company. Those Friday drinks at the office are according to the OHS act not allowed in any workplace and should you trip and fall down the stairs and injure yourself or another employee, it is seen as gross negligence where management can be held legally liable for knowingly allowing such behaviour to take place on company premises. Furthermore if someone is killed criminal charges may be brought against those responsible.

Often the concept of working through a hangover is spoken of in jest between co-workers and friends, however, the reality is that you are working with a hangover and, you are likely still intoxicated. This should be the first thing you remember whilst driving to work the day after a heavy night. Technically, you are driving under the influence of alcohol. Next time you consider laughing a hangover off with your mates, consider the consequences of causing an accident where someone is injured or killed and the other driver notices the smell of alcohol on your breath. Besides the jail time could you live with the guilt?

One alcoholic beverage takes a full hour to make its way out of your system and includes one standard sized beer, 130ml glass of wine or one and a half tots of spirits. If a lot of alcohol is consumed, it can take many hours for it to work out of your system.

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INTHEKNOW

Scant Regard for Corporate Governance in

With the recent findings of the Constitutional Court pertaining to the Nkandla matter, the subject of corporate governance has intensified and the topic has featured in media headlines, talk-shows and public debates across South Africa.

N

otwithstanding these recent events, have boards and their directors taken the issues attached to corporate governance seriously enough; particularly since the debacles attached to SAA, PRASA, Eskom, SABC and so many others which have been mired with alleged poor governance practices. And whilst there are endless regulations being passed -- with yet another new set of governance recommendations being published through King IV -- many organisations and their leadership continue their laissez-faire attitude with scant regard for good governance and accountability.

The practice of corporate governance appears to have lost traction in many South African organisations, notwithstanding the recommendations found in the Corporate Governance Codes such as those in King III and the imminent King IV. Almost every day South Africa is bombarded with examples where poor governance is exposed in government departments, private and listed companies, universities, schools, national sporting events and even churches - in fact, in all areas of our beleaguered society. Even the current Nkandla and Gupta exposé are testament of poor governance, where President Zuma has been deeply compromised; all the ingredients of good governance are lacking. Seemingly, South Africa’s moral compass has lost its direction and our leadership across many sectors has degenerated to such an extent that it is becoming increasingly difficult to see the light at the end of the tunnel. As we have come to expect, many leaders claim their allegiance to moral behaviour and good governance practices; but few of them pass muster.

What remains a great disappointment is the fact that many of our leaders lack the political will or ability to make the changes required to reverse South Africa’s current downward trend, both politically and economically. The evidence of poor leadership and their shocking governance practices can be found in, for example, the downward trend of South Africa’s

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SA

by Terrance M. Booysen, Images by Freepik

credit ratings, or the continual negative reports from the Auditor-General in respect of the repeated qualified audits being provided to a number of government departments. But government and its organisations are not the only culprits.

Many corporates fail to provide a true reflection of their own malpractices, mismanagement and greed. This is a result of setting inadequate or inappropriate operational plans with deliverable targets, as well as lowering the bar for business standards, awarding excessive remuneration packages to undeserving directors, disregarding environmental matters, anticompetitive behaviour, unfair labour practices as well as inaccurate annual reporting to cite a few examples within the corporate sector.

Another cause for great concern -- which is common to both the government and corporate business sectors -- is the number of directors who have been appointed to boards where their qualification and experience are inadequate or completely lacking. Given these circumstances, it is therefore not surprising to see how many directors treat corporate governance merely as a ‘tick-box’ exercise. They do not realise the critical importance of embedding proper governance within their structures, as well as their individual behaviour. Needless to say, their selfish tendencies trump their fiduciary duty to serve the interests of the organisation, and the true value of good governance by-passes the organisation. To illustrate this point, boards that are typically dominated by self-serving individuals will not undergo a proper external board evaluation to determine the actual value they offer the organisation.

Their annual evaluation process amounts to nothing more than a simple ‘yes/no’ response to a basic set of questions which lists the same issues each year. Simply put, not only is this type of evaluation a complete waste of time to appease a select few, it may as well have been completed by the director’s personal assistant. Given this example, directors are not being put through their paces, nor are they being challenged to show their true value to the board and the organisations they serve.

Moreover, these directors do not formally gather to review the exercise, nor show the willingness to learn from the findings and change for the better. Notably, this lack of seriousness and diligence to ‘stretch’ the director for the benefit of the organisation exacerbates the leadership crisis in South Africa; it’s also tantamount to breaching their fiduciary duties owed to the organisations they are meant to serve.

INTHEKNOW

As we have come to expect, many leaders claim their allegiance to moral behaviour and good governance practices; but few of them pass muster.

Holding people accountable − especially leaders in government − appears lacking in many respects; often the culprits of poor governance are ‘let off the hook’ or at best, rapped gently on the knuckles. There must be ground rules firmly in place which are followed consistently, and applied rigorously to everyone who is handed the leadership baton. Failure to do this, and without appropriate consequences for transgression, is certainly not the way to improve our current situation in South Africa, which is plagued by countless examples of poor governance and which now seems to have become the norm.

Practical knowledge to improve corporate governance must be made available and shared at all levels within organisations. Regrettably, even though the knowledge and tools to improve and broaden governance may be available, only a few − relatively speaking − who are concerned about such issues within their structures actually take proactive action. These organisations consciously choose to address their governance issues across wide ranging areas. Generally, they start their governance processes within the board, and then extend their efforts via their management team to the operations

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INTHEKNOW

and their extended supply chain, in order that the overall sustainability of the organisation is improved. These forward thinking organisations have understood that to improve their governance, it must be approached in a methodical and balanced manner, giving full consideration that the process must be viewed as a part of its ethos and overall strategy.

Clearly, organisations that approach governance on this basis are not in it for the short haul, neither do they see their efforts as a governance ‘dressage’. Instead, these organisations and their leaders understand how to unlock the value of good governance, such where the process is not seen as an inhibitor to business, but rather as a value-added necessity which improves their bottom line performances and increases stakeholder value.

As more organisations begin to understand and apply good governance, and their mind-set moves toward tangible value, research shows there are significant sustainable increases in shareholder value and higher profits as compared to those who disregard its importance. The critical point here of course is ‘discovering’ the value of good governance and then ‘unlocking’ it. Rather ironically, whilst some people have the means to improve their governance practices, they fail to take the appropriate remedial action, thereby paying lip service to good governance. Sadly, many organisations and their ‘leadership’ have simply put in place the minimum measures to meet the most basic governance requirements – and this is because they may be under duress from their sectoral regulations. Some of these minimum measures include, but are not limited to;

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separating the duties of chairmanship and the role of a CEO, putting in place new policies and charters, establishing additional sub-board committees and introducing integrated reporting. In many instances, notwithstanding these attempts to ‘dress’ the organisation in a better governance light, there has been little, if any significant noticeable or measureable improvement to the overall functioning or value of the organisation.

This can be attributed mostly to the organisations’ leadership who failed to correctly apply the broad principles of PPP (people, planet and profit) in a balanced, sustainable way. Their selfish purpose has remained singularly focused on self-enrichment with little regard for their impact upon the people and planet resources.

At the end of the day, we need to see value in that which we embark. If there’s no value (or purpose), why do it in the first place? It is entirely true that business is designed for making a profit. However, as modern business has evolved, we need to accept that an organisation’s new value will be determined not only by its profitability, but it will include the organisation’s ethical values espoused by protecting people and the planet. By simply passing over the people and planet components in a tick-box type manner, and remaining fixated only on profit, an organisation is inevitably doomed to failure. Value has got to be shown in every facet of a modern business, namely value for profit, value for people and value for our planet.

CGF Research Institute has for many years advocated the need to improve the corporate governance knowledge amongst all the employees of an organisation. Directors, senior management and their employees must extend their thinking beyond the basics of governance and foresee the additional value governance brings to the organisation. Once an organisation has implemented its Corporate Governance Framework®, organisations and their leaders should ask what are their next steps to differentiate themselves from their competitors.

In reality, many directors are not on top of these issues and have simply − at best − stuck to the bare minimum of governance requirements. Of course there are consequences of not applying one’s mind to the associated risks attached to these areas and it’s only a question of time when these matters will negatively impact the organisation through the poor, shortsighted actions not taken by the board and its leadership.

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INTHEKNOW

No Waste, No Fuss for the Mining

Industry

by Hermann Erdmann, CEO of REDISA (Recycling and Economic Development Initiative of South Africa)

The mining industry is facing several challenges that have left many people wondering what the future holds for the industry and the greater economy. According to the Minister of Mineral Resources, speaking at the Mining Indaba, the government will “Continue to advance the industrialisation of the country through the beneficiation of our minerals in line with the nine-point plan, which aims to sustainably and inclusively grow the economy of the country.�

INTHEKNOW

H

ow can we, as private industry, contribute to this goal through out-of-the-box solutions for pressing problems? One such problem is managing large off-the-road (OTR) tyres. Mining companies are required, by law, to have abatement plans in place to deal with OTR tyres once they reach end of life. Despite this requirement, there was no solution to deal with the problem (of downsizing and recycling OTR tyres) and mining companies were unable to meet compliance requirements.

These bulky tyres, impractical and expensive to transport, can nevertheless provide the raw material for further use in the recycling process, not only enabling the development of a whole new industry and related job-creation opportunities, but also solving the environmental risk posed by waste tyres.

This is a win for both the environment and the country’s growth prospects.

In theory the solution might seem simple: source machinery to downsize the OTR tyres (weighing up to 6 tonnes each) into shredded material which can then be sold to secondary industries who develop products from the material.

In reality, this is far more difficult. The costs involved to purchase and import the required machinery is a huge barrier; furthermore, there was no secondary industry to sell the shredded material to. Compounding this was the challenge of getting the mining companies to develop their abatement plans.

These challenges have finally been overcome by REDISA’s end-to-end solution. A project two years in the making, the solution covers all aspects - from getting industry on board, establishing the necessary machinery, and developing the secondary industry which uses the raw material for products.

A key challenge, common for many small businesses and start-ups, is that funding has

not been addressed adequately. The solution to this challenge is our approach to entrepreneurship, business development and empowerment. Our approach is different, but it’s working.

The historic approach to addressing challenges affecting our economic growth is not succeeding.

REDISA’s business incubation programme addresses these funding challenges. We support the development of businesses with advisory and administrative support services.

Where the business proves to be viable, the ownership is passed to candidates, at market value, who meet with specific performance requirements in terms of compliance, operational management, financial management, and product and market development.

Waste Beneficiation is one such example of REDISA’s business incubation programme. The business brings a unique solution to downsize and remove tyres from stockpiles, allowing for abatement plans to be developed and implemented at the mines. The company has the capacity to downsize between 50-60 tonnes of OTR tyres per day with state-of-the-art machinery situated to service identified mines.

The project addresses the environmental challenge posed by the vast volumes of discarded OTR Tyres.

In addition, Waste Beneficiation adds to the value chain of the country as the crumbed product derived from the OTR tyres can be used in asphalt, roofing tiles, rubber bricks, and playground matting, to name a few.

We challenge all South Africans to be unconventional in their thinking and to collaborate so that, together, we can build a stronger, empowered society. I believe that entrepreneurs and business leaders will be the key custodians responsible for leading the transition to a shift in the mining industry and closing the loop on dwindling resources.

Essentially, this is what we need to be focusing on: finding solutions to the many challenges and problems that we face as a country and a continent.

Why Social Media is Not

Valued by Savvy CEOs

by David H Deans

INTHEKNOW

With macro-economic uncertainty continuing in numerous markets around the globe, some chief marketing officers (CMOs) at large multinational companies are already being forced to make dramatic budget cuts to both their staffing levels and the associated annual operating budget.

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ne key area of marketing that’s going to be hit particularly hard is the Corporate Social Media team.

These organisations − led by people who consider themselves as ‘Social Media Experts’ − are notorious for having difficulty justifying their leap-of-faith expenditures.

But the savvy senior executive is no longer intimidated by their jargon, or tolerant of their demands for greater budget allocations. Game over.

Experts, or not, they’ve now come under the close scrutiny of their CEO − just as their counterparts in the legacy PR department did during the end of the 20th century. What’s happening here – and why is it surfacing now?

The High-Cost of Low-Quality Business Communication B2B Social Media teams have a similar problem that their PR team peers have had historically − explaining to senior executives why they need so many people, consuming so much money, to produce so little in the form of an apparent return on investment (ROI).

And yet, this situation is actually a huge upside opportunity for new thinking. Let me explain.

Part of the problem stems from the apparent identity crisis these groups have inherited, as a by-product of the pervasive legacy media-buyer mentality within large company marketing departments.

Within the Technology, Media and Telecom (TMT) industries (my focus), the B2B corporate PR staffers rarely interact with the ‘Public’ and their primary ‘Relations’ are with outside agencies and contractors – i.e. where they outsource much of the real work. Perhaps a more accurate name for these organisations is the Press Release Production department – since that’s often seen as their primary deliverable.

Furthermore, over time, the corporate PR staff function has evolved into a program management role that provides coordination between the internal demand for publicity and the external supply of the strategy and execution that’s performed by a skilled and proficient outsider(s).

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Missing the Essential Value-Added Component That being said, I remember a time when people in large company corporate communications roles were required to be actively involved in assessing the marketplace, performing a situation analysis and then creatively crafting several alternative strategies before deciding on the best plan of action.

Only then would someone write a first draft of the storyline that would eventually result in a press release.

They would proactively reach out to ‘brief’ the best-fit industry analysts, mainstream journalists and independent columnists that were known to cover that particular topic.

In most cases, the industry trade media was likely the chosen channel used for distribution – it was perceived to have the greatest reach.

What changed? Today, the strategic thinking and all of that traditional in-house PR work is now often performed by someone that doesn’t work on the corporate payroll. The typical end-result, many press releases lack context or a strong narrative with a distinctive point of view.

This common problem is compounded when the content is about an inherently complex technical product or service scenario that requires the lead strategist and the narrative author to possess core-business acumen and deep-domain industry knowledge or experience.

More often than not, the resulting attributelite PR output is clearly not newsworthy. It’s lacking in both meaning and substance. It’s not a coherent and compelling story – with a beginning, middle and an end.

It relies mostly on the brand’s reputation as ‘a key industry player’ to gain traction in the marketplace.

Given this backdrop, is it

any wonder why CEOs are puzzled that they’re being asked to fund this expensive and frequently ineffectual exercise at current levels? When you consider the staff salaries and benefits involved, then add in the cost of their outsider programme spend, the obvious question will naturally surface – isn’t there a better way that’s proven to be more effective?

How Most Social Media Teams Offer a Non-Solution For clarity, let’s imagine this evolving scenario from the perspective of an impatient CEO. In the TMT industry space, the collapse of the traditional trade media means that there are now fewer places to pitch old-school press release content. Granted, you can still find some media outlets that will gladly trade online exposure of your inert content (in return for paidsponsorship of their event).

Regardless, the CMO preferred to create and populate a Social Media Marketing team. They may have transferred people in from the legacy PR and Marcom groups, and gave them ‘cool’ or funky job titles. An outside Social Media consultant − hired by the Lead Expert – then proclaims that it’s all totally awesome.

The CEO merely groans in disbelief, as the Lead Expert finds new ways to spend more money.

Opportunistic social media software vendors are then quickly brought in with tools, to help build a very cool ‘Social Media Listening Center’ – it didn’t seem to matter that the business imperative was unclear.

The CEO asked, but what are they ‘listening’ for exactly?

And what was the anticipated outcome of this voyeuristic activity? The response is often incoherent. So, the CEO wonders, maybe when our customers or sales prospects make remarks about our product and service offering in social networks, then the Experts would step in to offer thoughtful and insightful commentary. That’s a logical expectation, right?

By and large, that type of meaningful and substantive online engagement would require informed, experienced and knowledgeable people to react to what’s being displayed on those social monitoring tools. So, there’s no way to avoid it, we’re back to the talent issue. What to do next? That’s when the agencies and contractors were called upon, once again.

B2B Social Media teams have a similar problem that their PR team peers have had historically − explaining to senior executives why they need so many people, consuming so much money, to produce so little in the form of an apparent return on investment (ROI).

Meanwhile, it’s still hard to extract an acceptable ROI (business-related outcomes) from semi-skilled program managers. These internal Social Media Experts say they aren’t capable of being actual practitioners, due to technical content complexity issues. But that’s precisely what the CEO was expecting – employee engagement online that was impactful.

So, just what are these Social Media Experts doing with their time?

The Experts still won’t invest the effort to learn about their employer’s industry, nor the product or service portfolio – but they will find the time to give presentations and be on panels at conferences that focus on everything Experts would ever want to know about social media best practices.

After all, they likely still believe that Social Media is a profession; it’s the career they want to pursue. But there’s a huge problem: the people that choose to follow the Experts online are their peer group; not the buyers and purchase influencers that fit the company’s target persona profiles.

Therefore, the CEO discovers the golden rule of online Social Influence – ‘You Are What You Share.’

Damn those cute cat videos and cuddly puppy photos.

Curse those Social Media manifestos. What to do next? The CEO now warms up to the CMO’s ‘plan B’ idea – position a few key internal executives as industry ‘thought-leaders’ that share content with the company’s primary stakeholders online.

Yes, Thought-Leadership Requires Leading Thoughts In my experience, this is easier said than done. It’s a fact; researching and developing meaningful thought-leadership is a significant undertaking, even for large companies that have dozens or hundreds of people with the words ‘marketing communications’ in their job description.

Again, we’re back to the talent issue. Most of the senior executives are too busy to work on thought-leadership projects. Besides, those executives that can find time often struggle to produce something that’s truly enlightening. The few that can articulate something profound may still have difficulty writing a coherent narrative. What to do next?

The quest for a solution frequently focuses on attempting to find an internal ghostwriter that can perform the thinking, the analysis and the writing. This approach, and especially outsourcing the whole task to outsiders, can be very

problematic. Keep in mind how easy it is to ‘out’ someone online that isn’t authentic.

It’s one thing to credit a quote to an executive in a press release − knowing they didn’t say those words − but it’s a much bigger issue when you try to build-up the persona of an unknown thought-leader and then present that individual online for public scrutiny.

Amplification is No Substitute for Authentic Influence But even if you boldly decide to take that risk, the newcomer thought-leader’s market reach and influence is somewhat limited, because they likely had no prior online presence. Now the challenge is compounded, because the investment must be made to promote the neophyte thoughtleader and try to raise awareness. What to do next?

One solution that seems to be gaining favor is the notion of using social media amplification – that’s where you reach out to all your marketing employees and instruct them to use their own personal Twitter, Facebook and other social media accounts to promote the ‘chosen’ company thought-leader.

But wait, there’s another huge risk with this approach.

What happens to all the investment in time and effort when the exalted executive with the elevated online persona decides to leave the company and join a competitor? It’s a rhetorical question; I’ve seen it happen. The pain was somewhat predictable.

When you place this much emphasis on the visions and perspectives of one or two people, and think through some worse case scenarios, then the major flaws of this top-down thinking will become blatantly obvious. Besides, it’s proven to be so much more effective when you promote the recognised authentic (real) thought-leaders − regardless of their job title − that already exist in large companies.

A Return to Quality-Centric Business Narrative I believe we’ve reached an inflection point. It’s a crossroads where CMOs can choose communication quality over mere quantity. You see, the savvy CEO now realises that mass quantities of bland and barren content gives the Social Media Experts lots of busy-work to fill their days, but it rarely contributes to actual core-business goals.

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by Chia-Li (Jolly) Chien

Common Mistakes to Avoid When

Presenting To Investors

I recently had the opportunity to be a mentor, deal screener and speaker for the 4th annual Angle Capital Summit. Although there were specific things to look for as a deal screener on behalf of the investors, I couldn’t help but to reflect on an article I recently wrote about G.U.P, as well as some of the material in my book Show Me The Money.

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any of the applicants at the Summit looking for funding had very little training in how to prepare a presentation for investors. Most had some type of business plan to start with, but some did not even have an executive summary. If you’re serious about your business, you must be prepared.

So what does an investor look for? Although I acted as a deal screener, I don’t necessarily have any interest in investing in a company I work with, but I do certainly have an interest in seeing that company succeed. As I’ve worked with clients over the years, there are many things we purposely put in place.

Owners have to create a win-win situation for themselves and investors. You, as the owner, as well as the investors, are taking a risk on your ideas.

Here are six common mistakes to avoid as you prepare your investor presentation: 1. Having no clear business model. Only one out of ten deals I reviewed had a solid business model. There are three components of a business model: 1) Owner’s passion and business purpose; ideally equalling what the customer is willing to pay you. 2) Core competency of key processes and key resources. 3) Economic engine or profit formula, which includes a plan for diversifying revenue sources.

2. Not the right time to introduce your idea to the market.

Some ideas I saw at the Summit were frankly out of date. If you want to introduce an old idea, make sure to innovate or create a mash-up compelling enough to repackage the idea for presentation.

3. Not the right place to introduce your idea to the market.

Did you do enough market research to present your case?

How credible is your source of market research?

4. Not having the right team of people to implement your idea. Most companies I reviewed are weak on implementation, meaning they were short on resources to implement their ideas. Resources include vendors, and most likely a team of other professionals. Identify them properly.

5. Not planning to work in and run the business. I’ve seen, over the years, that some people just want the title without the work of the start-up. Well, that’s a good strategy for an exit plan, but at least at the beginning, you must be an integral part of your business, which will help you in the future to know how to react quickly to market changes.

6. Entering without 10,000 hours of industry experience. Most of the deals I explored at the Summit were from people who did not have actual industry experience. According to research reported in Malcolm Gladwell’s “Outliers,” you need about 10,000 hours of experience in the industry of your business idea.

If you personally don’t have it, have someone on your team who does.

Not everything has to be perfect in order to find funding, but nevertheless, put your best effort forward to show you are serious about making your business idea work. No one will know you are serious about succeeding until you have a complete plan. The amount of work, research, and thought you put into an entire business plan will speak louder than just a one page executive summary.

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Spotlight

South Africa’s Energy Industry Turns to Gas

by Oxford Business Group

Seeking to reduce its dependence on coal-fired power, South Africa is shifting its energy mix toward natural gas and renewables.

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he country currently consumes around 180bn standard cu feet (scf ) of gas per year and remains heavily reliant on imports to satisfy demand. Roughly two-thirds of total consumption is imported from neighbouring Mozambique.

With the authorities announcing plans to add 3.1 GW of gas-fired generation capacity by 2025, compared to a total of 1.35 GW at present, identifying new domestic gas reserves and boosting imports both rank high on the agenda.

Commercialising conventional reserves Efforts to commercialise the Ibhubesi gas field, located 105 km off the coast of North Cape Province, have taken another step forward, with Australia’s Sunbird Energy – which holds a 76% stake in the joint venture alongside national oil company PetroSA’s 24% – signing an agreement with public electricity utility Eskom last year.

Ibhubesi ranks as the largest proven gas field in the country, with 540bn scf of deposits and an additional 7.8trn scf believed to lie in the surrounding Orange Basin.

Under the deal, Eskom’s Ankerlig power stations, 40 km north of Cape Town, will take delivery of 30bn scf of gas per day for up to 15 years beginning in 2018, when production at Ibhubesi is expected to come on-line. Exploration efforts are also progressing in nearby Saldanha Bay, where 14 oil and gas exploration licences have been issued for blocks off the coast.

Discovery and drilling in the area could help fuel ongoing development of the nearby industrial development zone (IDZ) specialising in oil and gas services and marine repair.

According to Willem Roux, Saldanha Bay port manager, the IDZ, which is scheduled to see R9.2bn ($602.5m) worth of investment over the next five years, is ideally positioned to serve oil rigs operating off the west and east coasts of Africa; around 120 oil rigs pass by the South Africa coastline each year, he told local media in 2015.

While much of the hub’s capacity will be geared toward supporting offshore production, work is also beginning on a liquefied petroleum gas import terminal in the bay, due to come online by June 2017.

Shale potential In addition to conventional reserves, shale gas presents an attraction avenue for boosting domestic supply, with South Africa home to the eighth-largest shale reserves in the world.

Numerous energy firms, including Shell, Falcon Oil & Gas and Bundu Gas & Oil, have long sought permission to explore shale gas potential in the Karoo Basin in the south of the country.

The semi-arid Karoo region, which is also home to a national park, is thought to hold between 390trn and 485trn scf of recoverable reserves. According to a study

commissioned by Shell, extracting just 50trn scf of these reserves could add up to $20bn per year to South Africa’s economy – equivalent to 0.5 GDP percentage points – for the next 25 years and create as many as 700,000 jobs.

If granted a licence to drill, the company has said it would invest some $200m during the first exploration phase of six planned wells.In early March, following several years of debate over the environmental impacts of production, the government announced that shale gas exploration would begin within 12 months. “One area of real opportunity for South Africa is the exploration of shale gas,” a joint statement by cabinet ministers responsible for the economy said in March. “Exploration activities are scheduled to commence in the next financial year. This will lead to excellent prospects for beneficiation and add value to our mineral wealth.”

Water worries Despite the discovery of commercially viable reserves, extracting the shale gas may not be an easy feat.

According to a recent strategic environmental assessment for shale gas development in South Africa, in order to disrupt the substrata and release the gas, vast amounts of water would be required as part of the fracking process, water the arid Karoo region does not naturally possess. Average rainfall ranges from just 100 mm in the west of Karoo to 400 mm in the east.

The potential solutions – either piping-in water or finding deep aquifers – would likely be expensive and drive up baseline costs, while the extensive use of water could also damage the local ecosystem.

Increasing imports While commercialising domestic reserves remains a longterm priority, South Africa is relying on a new 2600-km pipeline from Mozambique to help bolster supply in the medium-term.

Mozambique has an estimated 100trn cu feet of proven natural gas reserves, according to press reports, making it the thirdlargest holder in Africa after Nigeria ad Algeria.

In early March South Africa’s SacOil Holdings announced an agreement with Mozambique’s national oil and gas company, Mozambican private-sector consortium Profin Consulting and the China Petroleum Pipeline Bureau (CPP) to construct a $6bn natural-gas pipeline from the Rovuma Basin in northern Mozambique to South Africa’s Gauteng Province, with offtakes to other neighbouring South African Development Community countries.

Funding for the project will come primarily from China, with the CPP responsible for procuring 70% of debt financing from Chinese financial institutions. Though the details of the financing have yet to be finalised, pipeline completion has been tentatively set for as early as 2020.

CEO 2016 Vol 15.4

53

As our a alw ys ld hou views s nder nu be take ent advisem

what’sHOTorNOT We share brief perspectives with you on items that we think are worthy of your consideration.

*some of the images were obtained from freepic.com

Chipping Away In our previous edition we reported on a workplace survey that suggested many employees would be happy to don wearables that will allow their employers to track their activities.

Hardly had we finished decrying the manner in which this would impinge on workplace privacy and our attention was drawn to the potential of chip implants in humans. Religious extremists have already seized on it as the mark of the beast and more. We reckon with the right application in mind (medical monitoring for instance) it could be hugely beneficial – we still worry though that personal freedom will be seriously hemmed in by technology of this nature.

Vroom Vroom If you absolutely must own a Porsche but are struggling to come up with the dough, we have good news, we think. The venerable Stuttgart firm has launched the Office Chair RS. It is apparently based on the seat you would get in one of its cars, right down to the leather cladding. But be warned, you can only buy it on order, it’s going cost you R96k and there is no word as yet on how it handles.

Silk Road ‘For countries that are unable to finance investment from domestic savings, which are often poor countries unable to borrow cheaply in international bond markets, foreign direct investment brings muchneeded capital.’ This extract from a HSBC report on China’s FDI strategy is telling. Brace yourself, there is more Chinese money coming our way.

We have seen a couple of international reports surfacing of late that suggest horseback holiday safaris are proving to be a popular choice amongst the relatively well-heeled. In case you are worried that we are suggesting you gallop your way across deserted out backs, rest assured we are promoting a more genteel approach. For instance England’s Dartmoor National Park offers an uplifting experience (we are told).Visit www.libertytrails.com and drop us a line if you have hobnobbed with the British, we would like to hear about it.

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by Carl Wepener

The new-generation Awesome & comfortable

My biggest quip with the previous model was that the ride comfort was really not on par as to what is expected of Mercedes Benz. Yes even its entry level was highly speced with great looking rims and some low profile tyres. But even with high profile tyres it remained uncomfortable on our roads. The new-generation A-Class reconciles this conflicting aims of sporty performance and enhanced comfort throughout the range. Yes the 45 AMG is still a lot less comfortable then the other siblings but it is expected of this true ‘pocket rocket’ With its DYNAMIC SELECT, the driver is able to change the characteristics to comfortable, sporty or efficient.

T

he A-Class is available in two diesel and three petrol variants.

For the diesel models, the A 200 d and A220 d and the A 200, A 250 Sport and Mercedes-AMG 45 4MATIC for the petrol models. With its dramatic design in the style of the successful MERCEDES AMG PETRONAS Formula 1 team, the special ‘Motorsport Edition’ model will particularly appeal to racing fans.

The Mercedes-AMG A 45 4MATIC also benefits from the model update. With a peak output of 280 kW and maximum torque of 475 Nm, the entry-level model from MercedesAMG is the world’s most powerful compact sports model.

The revised gear ratios, aerodynamic fine-tuning and the new DYNAMIC SELECT driving modes raise overall performance to a higher level, underlining the claim to leadership in this market segment.

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CEO 2016 Vol 15.4

“With the DYNAMIC SELECT driving programme selector, the new chassis with adaptive damping and LED high-performance headlamps, the new generation of the A-Class demonstrates just how high the level of innovation can be in this segment”, says Florian Seidler, Co-CEO Mercedes-Benz South Africa & Executive Director Mercedes-Benz Cars.

“2012 was a year of paradigm change in the compact class. The new A-Class was a radical departure from the preceding series. And a successful one: as the most progressive model in the compact class, the model series has made a significant contribution to make the Mercedes-Benz brand more youthful. With this model update we are now meeting the wishes of many customers for even more comfort with no loss of dynamic performance,” adds Seidler.

The chassis: comfort at the touch of a button With DYNAMIC SELECT the vehicle characteristics can be adjusted in seconds at the touch of a button, as the system modifies the engine, transmission, suspension, steering and air conditioning at the driver’s behest. The four driving modes ‘Comfort’, ‘Sport’, ‘Eco’ and ‘Individual’ can be conveniently selected using the switch in the upper control panel. The A 220 d and the A 250 Sport models are equipped with DYNAMIC SELECT as standard. The system is also included as standard in all models with 7G-DCT, AMG Line or a lowered suspension. DYNAMIC SELECT is available as an option for the A 200 and the A 200 d.

DYNAMIC SELECT allows a particularly broad range of setting options in combination with the new suspension with adaptive damping (optional extra). In this case the driver is able to modify the

A-Class vehicle’s damping characteristics using the DYNAMIC SELECT Switch.

There is a choice between Comfort mode with comfortable damping characteristics and Sport mode for a sporty and tauter damper set-up. Acceleration sensors are used to measure the vehicle’s body movements, and other current information about the vehicle status such as the steering angle, steering speed and yaw rate is included when calculating the damping characteristics. A proportional valve is actuated electronically at each shock absorber to control the oil flow and therefore the damping characteristics. The damping system is infinitely variable, and the configuration is individual for each wheel.

The design: dynamically curved surfaces and a fresh ambience Striking lines, dynamically curved surfaces and coupé-like window lines characterise the exterior of the A-Class, following the design philosophy of sensual purity. The form of the new, more arrow-shaped front bumper takes its lead strongly from the Concept A-CLASS (2011) concept vehicle. With a diamond grille, new LED high-performance headlamps (optional extra) and newly designed tail lamps with dual tailpipe trim integrated flush into the bumper, the new generation emphasises the sportiness and dynamics of the successful compact class model series.

An instrument cluster of tubular design with classy dial graphics and anodised switches upgrades the high-quality interior, as does the large, free-standing and frameless display of the infotainment system, which is now optionally available with a larger 20.3-cm (8-inch) screen. New colours and materials, as well as new finishes for the trim in the dashboard, ensure a fresh

LIFESTYLE

ambience. New features include sahara beige / black leather in the Exclusive package and a new seat design with red or green highlights in the Style line.

Optional LED High Performance headlamps and ambience lighting which can be individualised with twelve colours and five dimming levels – the equipment range for the A-Class has been carefully expanded in many areas. Also new is the fully adjustable seat cushion - adjustment by up to 60 mm – a standard feature in all equipment lines.

With its dramatic design in the style of the successful MERCEDES AMG PETRONAS Formula 1 team, the special ‘Motorsport Edition’ model will particularly appeal to racing fans. Areas of the front and rear bumper trim are painted in petrol green, and the same colour adorns the rim flanges of the AMG light-alloy wheels. The AMG rear aerofoil is embellished with petrol green highlights, as are the exterior mirrors (only in conjunction with A 250 Sport). Eye-catching details in the interior include the petrol green surrounds of the air vents and the contrasting topstitching in petrol green. The sport seats upholstered in black leather/DINAMICA microfibre have petrol green decorative strips, as have the seat belts. The

‘Motorsport Edition’ is available for all engine variants from the A 200, 200 d, A 220 d and A 250 Sport (except the A 45).

The powertrain: two diesel and three petrol engines The A 200 rated at 115 kW is the entry-level model of the A-Class. The efficiency champion is the A 200 d delivering 100 kW of power and the A 220 d with 130 kW of power and 350 Nm of torque respectively. Both diesel models report 116 (A 200 d) and 109 (A 220 d) CO2 g/km emissions, and are therefore not liable for CO2 tax.

Fuel consumption on these diesel models are just 4.2 l/100 km for the A 220 d and 4.5 l/100 km for the A 200 d. Numerous measures to enhance efficiency have made these outstanding figures possible.

The A 220 d now has a slightly higher output of 130 kW while the sport models A 250 Sport now develops 155 kW. The ‘ECO display’ also takes a new form to assist the driver in maintaining an environmentally friendly style of driving.

The Mercedes-AMG A 45 4MATIC also benefits from the model update. With a maximum output of 280 kW and a peak torque of 475 Nm, the entry-level model from Mercedes-AMG is the world’s most powerful compact sports model. This power pack delivers a dynamic performance that is unrivalled:

LIFESTYLE

it accelerates from rest to 100 km/h in just 4.2 seconds. This means that the new Mercedes AMG A 45 takes 0.4 seconds less for this exercise than its predecessor. At the same time, fuel consumption has been kept at the previous level: no other high-performance model in this category can match its NEDC minimum fuel consumption of 7.3 - 6.9 litres per 100 kilometres (corresponds to 171 – 162 g/km CO2).

Mercedes-Benz is also using the A-Class model update as the opportunity to introduce the new nomenclature for the drive variants in this model series. While the petrol models have no suffix, the small letter ‘d’ replaces the previous ‘CDI’ – the A 200 CDI is now called the A 200 d, for example.

Intelligent Drive: improved support, optional LED headlamps With numerous driving assistance systems from the drowsiness detection system ATTENTION ASSIST to DISTRONIC PLUS distance control, the A-Class is able to give its driver comprehensive support and protection. The assistance systems, which fuse data from various sensor technologies as part of the ‘Intelligent Drive’ concept and thereby significantly enhance safety and comfort, were further advanced in part. For example, the standard COLLISION PREVENTION ASSIST PLUS extends the functions of the previous COLLISION PREVENTION ASSIST (radar supported proximity warning and braking assistance by Adaptive Brake Assist) with autonomous partial braking to reduce the risk of rear-end collisions.

The drowsiness detection system ATTENTION ASSIST (standard) has been similarly upgraded: operating within an extended speed range (60 - 200 km/h), it now uses a five-stage bar

display to visualise the driver’s current attention level. Apart from their distinctive look, the LED high-performance headlamps (optional extra) offer added safety at night thanks to their broad light distribution and a colour temperature approximating daylight (standard on the A 250 Sport and A 45 4MATIC).

Success story: Two 2/3 customers new to Mercedes-Benz The new generation of the A-Class entered the market in September 2012. Owing to the great success enjoyed by this model around the world, it is manufactured not only in Rastatt, but, since August 2013, also by the Finnish production specialist Valmet Automotive. Sales soared by more than 46% in Great Britain last year, and by more than 50% in the growth market of China. However, most A-Class models continue to be sold to customers in Germany.

Around one in two drivers of a Mercedes-Benz A-Class or B-Class, GLA or CLA in Germany and Western Europe previously drove a competitor vehicle. In the case of the A-Class, no less than two out of three European customers come from competing brands. The Mercedes-Benz brand has also undergone a noticeable rejuvenation since the introduction of the new compact models.

Nowadays, the average age of European drivers owning the new A-Class is around 13 years less than for the preceding model series.

In China, the average age is 34 years.

For more information and pricing check out: http://www.mercedes-benz.co.za/content/south_africa/mpc/ mpc_south_africa_website/en/home_mpc/passengercars/home/ new_cars/models/a-class/w176/advice_sales/pricelist.html

Montecasino

Has That Winning Feeling

LIFESTYLE

Want to be certain of a great time, as well as the best gaming and entertainment experience Gauteng has to offer? If public and corporate sentiment is anything to go by, then your best bet is Montecasino, which has just been presented with an array of awards, the majority of which reflect the opinions of the Gauteng public.

“P

ublic votes are all-important in the age of consumer journalism, and we are particularly proud that we, as Tsogo Sun’s flagship property, have once again been voted Best Casino in the Best Of Pretoria Readers’ Choice Awards, while in the Leisure Options Best of Joburg Awards we were again voted Best Theatre, Best Place to Take Out-ofTowners, Best Place to Watch the Big Game and Best Cinema Complex as voted for by readers,” says Montecasino General Manager Glenn Joseph.

But it’s not only consumers who rate Montecasino as Gauteng’s premier entertainment destination. The precinct’s outstanding achievements have also been recognised by prestigious business bodies such as the Professional Management Review (PMR) and PAAZAB (African Association of Zoos and Aquariums).

In addition, Montecasino received the PMR – Diamond Arrow Award for the Business Sector: Best Casino/ Entertainment Centre in the City of Johannesburg 2015/2016.

This award recognises Montecasino’s commitment to enhancing economic growth and development in Johannesburg Metro Area, with an overall rating of 4.35 out

of a possible 5.00. PMR also presented a Diamond Award to Montecasino in the category ‘Companies, Institutions, NGOs doing the most to promote Arts and Culture in the City of Johannesburg’, with a rating of 4.32 out of a possible 5.00. Both these ratings were the highest in their respective categories of the PMR Awards.

Yet another prestigious award was recently presented to the Palazzo Montecasino, the precinct’s most luxurious hotel, which was once again voted Best Luxury Casino Hotel on the African continent in the coveted World Luxury Hotel Awards.

This is the sixth consecutive win for the Palazzo, which first won this award in 2010.

“We place great value on consumer and business awards such as these as they reflect our commitment to excellence in everything we do and to doing the right thing at the right time, every time,” continues Joseph. “With each prestigious award Montecasino is honoured to receive, we get one step closer to cementing our reputation as the iconic entertainment destination in South Africa and we assure every individual and organisation that voted for us that we will continue to strive to leave a memorable mark on every visitor who walks through our door and achieve excellence in all areas of our business.”

Says Laura Vercueil, PR & Communications Manager for Johannesburg Tourism Company: “As a stakeholder in the tourism and hospitality industry, we’d like to add our congratulations and good wishes to the list of kudos garnered

by Montecasino. Joburg prides itself on the depth, diversity and quality of its lifestyle and entertainment offerings and Montecasino undoubtedly has a proven track record as one of the city’s top attractions for locals, visitors and tourists.”

CEO 2016 Vol 15.4

63

o s t o N

MINI

anymore

by Carl Wepener

The Convertible and the Clubman

Maybe it is not good to talk about the Mini Convertible and the Mini Clubman in one article.

The two vehicles are totally different with a different market segment and totally different purposes. However, these two have one thing in common over their ancestors and that is size. The Mini has grown up, not only in size, but in quality, performance and sheer exhilaration.

I

don’t know why Mini is synonymous with young single people or the just married generation for I have had as much pleasure with the Mini’s as any of them.

The drive was most enjoyable in both the Convertible and the Clubman. I was amazed at the quietness of the Convertible with the top down. I forgot to put the top back up so I cannot tell you how quiet it was with the top up. What I can tell you is that both derivatives being the Cooper S models perform exemplary and is as sure footed as any other small sports car and is second only to the actual go-carts we get on the track.

Gearing is excellent in both the manual and the new 8 speed

automatic and fuel consumption is not bad at all having averaged under 7.5L per 100kms.

The Mini not only looks modern from the outside with its lovely day time running lights, it is very modern on the inside and all the modern equipment is very functional except maybe for the ambient lighting of the big round instrument binnacle that changes colour and is a bit overwhelming for the not so young like, me. As far as I am concerned the Mini is modern and sporty inside and out. I loved the comfort of the seats and especially that even taller people can be accommodated easily behind the steering.

Space in the back is exactly what the name says, “Mini” but is still much better than expected. As said, seating is very comfortable but maybe a little unsupportive when the Mini is handled like a go-kart.

I couldn’t fault the interior craftsmanship or quality at all. Pricing is well, high if you take the name ‘Mini’ into consideration but then you do get excellent craftsmanship, an occult sort of status and many enjoyable hours to spend with the Mini.

Snippets of interest The new MINI Clubman has grown in length with 27 centimetres and 9 centimetres wider than the latter, while its

LIFESTYLE

MINI Cooper Clubman: Price: R415 000 (Manual) and R434 500 (Automatic)

wheelbase is 10 centimetres larger. Its luggage compartment has a volume of 360 litres, which can be extended to as much as 1 250 litres by folding down the rear backrest with its 40: 20: 40 split. Not to shabby by some of our cross over standards. The Clubman and the Convertible may be called Mini but both are comprehensively loaded with just about all of the latest technology found in much pricier and prestige vehicles. This alone makes for the Mini to be a very capable and very safe vehicle.

MINI Cooper S Clubman and Cooper S Convertible: 4-cylinder petrol engine with MINI TwinPower Turbo Technology, capacity: 1 998 cc, output: 141 kW at 5 000 rpm, max. torque: 280 Nm at 1 250 rpm (300 Nm with overboost), (MINI Cooper S Clubman) acceleration (0–100 km/h): 7.2 seconds (automatic: 7.1 seconds), top speed: 228 km/h (228 km/h), average fuel consumption*: 6.3 – 6.2 litres (5.9 – 5.8 litres)/100 kilometres, CO2 emissions*: 147 – 144 g/km (137 – 134 g/km), exhaust emission standard: EU6. (MINI Cooper S Convertible), acceleration (0–100 km/h): 7.2 seconds (automatic: 7.1 seconds), top speed: 230 km/h (228 km/h), average fuel consumption*: 6.1 – 6.0 litres (5.8 – 5.6 litres)/100 kilometres, CO2 emissions*: 142 – 139 g/km (134 – 131 g/km), exhaust emission standard: EU6.

MINI Cooper S Convertible Price: R433 000 (Manual) and R451 000 (Automatic)

MINI Cooper Clubman: 3-cylinder petrol engine with MINI TwinPower Turbo Technology, capacity: 1 499 cc, output: 100 kW at 4 400 rpm, max. torque: 220 Nm at 1 250 rpm (230 Nm with overboost), acceleration (0–100 km/h): 9.1 seconds (automatic: 9.1 seconds), top speed: 205 km/h (205 km/h), average fuel consumption*: 5.3 – 5.1 litres (5.3 – 5.1 litres)/100 kilometres, CO2 emissions*: 123 – 118 g/km (123 – 118 g/km), exhaust emission standard: EU6.

Price: R343 000 (Manual) and R361 000 (Automatic) MINI Cooper Convertible: 3-cylinder petrol engine with MINI TwinPower Turbo Technology 1 499 cc, output: 100 kW at 4 400 rpm, max. torque: 220 Nm at 1 250 rpm (230 Nm with overboost), acceleration (0–100 km/h): 8.8 seconds (automatic: 8.7 seconds), top speed: 208 km/h (206 km/h), average fuel consumption*: 5.1 – 4.9 litres (5.3 – 5.1 litres)/100 kilometres, CO2 emissions*: 118 – 114 g/km (123 – 119 g/km), exhaust emission standard: EU6.

Price: R368 000 (Manual) and R384 000 (Automatic) * EU test cycle figures, fuel consumption dependent on the selected tyre format.

I have thoroughly enjoyed both the Mini Copper S Clubman and the Convertible and is pleasantly surprised by the quality and the technology available in these cars. I do believe that if Mini can convince more people just to come and experience the Mini for themselves, they will find much more willing buyers.

CEO 2016 Vol 15.4

65

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A f r i c a ’ s

M o s t

I n f l u e n t i a l

WOMEN i n

B u s i n e s s

a n d

G o v e r n m e n t

Success comes to those who are not only ambitious, but who are confident in their abilities. Amina Hersi Moghe from Khadhar Investment, a Country Lifetime Achiever, in Africa’s Most Influential Women in Business and Government 2014, is certainly a woman who is confident in her own abilities, but perhaps more importantly she believes in the future of Uganda.

W

A Confident

Approach

by Valdi Pereira

Amina Hersi Moghe Khadhar Investment

e have had many decades of stable government in Uganda and this has brought a lot of investment into the country,” she observes. “We are also seeing the Uganda diaspora making a return and spearheading investments in the region, which is a wonderfully positive thing from my perspective.”

She acknowledges that the most notable challenges that need to addressed are, health services and an education system that is not quite producing the type of skills that are needed to drive the economy forward at a rapid clip. “Our infrastructure, which is very important when you want to kick start economic growth, also needs attention,” she shares. “Currently our government is addressing the infrastructure challenges.

So while a lot has been done, a lot more will surely follow in the not too distant future.

Amina left Kenya in 1998 and started selling cement and doing transportation in Uganda. “I can thank the people of Uganda for the support they gave me when I started out with my business. The fact that they worked with me allowed me to diversify my business interests. The result is that I could make a contribution back into the economy such as the building of shopping mall and luxurious apartments.”

She is concerned that the girl-child is not very well educated in Uganda and regards this as a problem that needs to be addressed. Amina notes that some level of education is needed to understand and even develop an interest in business.

2015/2016 A Helping Hand “Women, when they want to start a business, also struggle to get credit. In some cases the assets of a household are held entirely in the name of the husband. Commercial entities will not easily assist a woman in such instances.”

Amina is familiar with this challenge having personally endured reluctance on the part of financiers when she wanted to take on two large scale projects: “I don’t see ambition as a bad thing, it shows an individual is driven and if they match it with a determination with that takes them toward their objectives, I think it is a good thing. Those times that I was seeking finance, I was told that I should first make a success of the first project and then the second one would be considered. That type of response sometimes makes me wonder if the potential of female entrepreneurs is being underestimated.”

Via the Uganda Women Entrepreneurs Association Limited, Amina supports a sugar production project. In terms

play, in helping impoverished women so they can improve their standard of living. Ever aware of the challenges these women will have when trying to access finance, Amina has provided them with a credit facility with a view to making their business operations a little easier.

Future Perspective Looking ahead Amina is filled with optimism for the economic future of Uganda. “I think the path of stability that the President has placed the country on is very important. It makes the country an attractive destination for investors.

“Of course I think we all recognise that not everything can come from the outside. We need to make things happen for ourselves. In this regard I think once we have people who are healthy and are properly educated and equipped with the right skills, we are going to make continuous upward progress.

“From a Khadhar Investment perspective, I can assure you that I will continue championing the opportunities that

Of course I think we all recognise that not everything can come from the outside. We need to make things happen for ourselves. In this regard I think once we have people who are healthy and are properly educated and equipped with the right skills, we are going to make continuous upward progress. of this project some 600 women from the northern region of the country, an area which is experiencing difficulties as a result of civil strife and unrest, have been identified to work with the famed entrepreneur.

She has given them part of her land as a farming project.

It is in fact becoming a case study that will be utilised by the association to see what role successful businesswomen can

Uganda holds. There are a lot of unexploited opportunities in the country. The areas of tourism, oil and mineral production are but a few areas.” With the enviable track record that she has established, there is little doubt that if Amina is confident in what the future holds, many others will do well to believe the same.

Article based on an interview with The New Economy.

CEO 2016 Vol 15.4

69

2015/16

Manu Chandaria, a continental entreprenuer

Manu Chandaria is without a doubt one of Kenya’s and the continent’s top entrepreneurs. He has taken a company started decades ago by his father and expanded it into a diversified industrial conglomerate with interests in aluminium, steel, plastics and information technology.

Knowledge

is Power

W

hile many businessmen his age will be giving serious thought to scaling back their business activities, this octogenarian is raring to go and is more excited about the business opportunities that are opening up on the continent and in East Africa, than ever before.

“I think it is fair to say that anyone that is really serious about opening up new business frontiers has an eye on Africa right now,” he says. “You can see it by the companies, both from the East and the West that are now establishing bases on the continent. There are exciting times ahead for us - that is for sure.”

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CEO 2016 Vol 15.4

by Valdi Pereira

In his opinion there will be growth across almost all sectors of the continental economy, whether it be in the consumer space or in the manufacturing and mining arena. The key in his view is to stick with what you know.

Have a Good Plan “As a company we know the housing sector really well, I think it makes sense to stick with this. I would be looking for trouble if I suddenly decided to venture into the ICT sector, that type of thing I would leave to people that know how to maximise value in that sector.”

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As a second generation entrepreneur, Manu Chandaria is a businessman of note. “Education opens up horizons for people and it does not matter how young or old you are. We all benefit from a better understanding of the world.

He is attuned to the challenges of the global economy and notes that the competitive rigours in various parts of his global conglomerate have put his management team to the test. “There is definitely a sense in the developed parts of the world where we operate that things are pretty tough and things are becoming competitive in these markets,” he shares. “By this I am not saying there is no competition in Africa. It is simply a question of benefitting from our local knowledge, because, after all, we are an African business first and foremost.”

He advises entrepreneurs to assess African countries in an individual way. It is in his view an error to look at African markets in a homogenous fashion. There are definite traits in each area that need to be capitalised upon.

“You also need to be sure you have a business model that works. In addition, nothing beats putting a local management team in place,” he maintains. “It does not happen overnight and you have to be really committed to upskilling people and getting them to a standard where you can confidently let them get on with the job.”

With Kenya having celebrated 50 years of independence in the not too recent past, Manu has had time to reflect on the changes in society. “There have certainly been improvements, but I think it would be fair to say, we are not as far down the road as we would have liked.”

Give Back Education is one of the most important elements he believes that can make a huge difference to the lives of Kenyans:

“Education opens up horizons for people and it does not matter how young or old you are. We all benefit from a better understanding of the world. It would help many of us understand the importance of having good governance structures and how these ultimately benefit all of us.”

He also points out that businesses need to remember they have a social responsibility, which they need to fulfil.

He adds that it is not enough to simply push the notion of corporate responsibility. He firmly believes that if a company gets something out of a country or community, it is incumbent on it to put something back. He highlights health and education as two areas where Africa is challenged and suggests companies should consider giving back in these arenas.

He has some advice for those people who want to build entrepreneurial organisations: “You must be willing to take calculated risks, otherwise you will never get the momentum you need to grow your business. It is also important to get out there and make things happen for your company – if you don’t, nobody else will.”

He also emphasises the value of building long-lasting relationships. “You need to build a reputation as someone that is willing to work with suppliers and clients, through testing times.

If you can achieve this you will be well on your way to cementing business relationships that will last you a lifetime.”

Article based on an interview published by Knowledge@ Wharton.

CEO 2016 Vol 15.4

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InConversationWith Matthew Lee, Regional Manager for Africa at SUSE, started his IT career in Networking in the early 90’s.

Working in all areas of the supply chain he has built up knowledge of the requirements and needs of end customers and resellers alike. He moved to Novell in 2007 to head up the National Channel for all lines of business within the company. Since then, he has held a few job functions including channel manager and business unit lead for Datacenter. In 2011 he moved to SUSE as Regional Manager for Africa where his role involves setting the strategy and direction of the local office, and positioning the sales and technical organisation to support the go to market initiatives in order to achieve the overall objectives of the company.

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What is the number of employees in your organisation?

Seven in our local office.

What led you to your current career path?

Technology trends. Open Source is the future and I wanted to get involved.

What does a typical working day entail?

Managing the local office as well as the regional alliances in Africa as well as marketing execution and, of course, telling people about the awesomeness of Open Source.

What’s the worst decision you ever made?

I don’t have a worst decision as such with a negative outcome, but rather decisions that could have turned out better. I don’t like to focus on the negatives in life.

What occupies your time outside work?

Sport - mountain biking, running, spending time with family and friends

What’s the best decision you ever made?

To join SUSE; a company at the forefront of Open Source technology.

Favourite music?

U2, Coldplay, Anything with real instruments

Where did you study and what?

Currently completing my MBA through Wits Business School.

What was your dream job as a child?

Game ranger.

What advice would you give to someone aspiring to your position?

Do your time in the salt mine, focus on your future, and go.

Having 20+ years IT experience under the belt is worth its weight in gold when engaging with senior executives with similar tenure.

What would you be if you weren’t in your current position?

Working in the field of nature studies.

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Five people you’d invite to dinner?

My dad, Nelson Mandela, Richard Branson, Barack Obama and Sir David Attenborough.

Business person you most admire?

No brainer – Richard Branson.

Three words to describe your leadership style?

Involved, trusting and driven.

What do you know for sure?

We live in a beautiful country.

CEO 2016 Vol 15.4

JOBURG FAST BECOMING A SMART CITY

Living in Joburg means having access to great opportunities.

That’s why the City of Johannesburg is turning your city into a smart city. Among other things, it gives everyone access to educational resources. Thanks to free Wi-Fi hotspots in city libraries, clinics, recreation centres and 100% Wi-Fi coverage around Braamfontein area.

Some of the Smart City initiatives are the 54 Wi-Fi hotspots rolled out along the Rea Vaya T1 and T2 routes and 20 are mobile hotspots buses.

Connect to Joburg_freeWiFi